Is A. O. Smith Corp. overvalued or undervalued?

As of 17 October 2025, the valuation grade for A. O. Smith Corp. moved from attractive to fair, indicating a shift in its perceived value. The company appears to be fairly valued based on its current metrics. Key ratios include a P/E ratio of 22, an EV to EBITDA of 15.25, and a Price to Book Value of 6.42, which suggest that while the company is performing well, it may not be significantly undervalued.
In comparison to its peers, A. O. Smith Corp. has a lower P/E ratio than SPX Technologies, Inc. at 45.73 and Simpson Manufacturing Co., Inc. at 26.38, but is slightly above Fortune Brands Innovations, Inc. at 22.87. The company's recent stock performance shows a 1-week return of 2.89%, outperforming the S&P 500's 1.70% return, but it has lagged over longer periods, with a 1-year return of -11.48% compared to the S&P 500's 14.08%. Overall, A. O. Smith Corp. is fairly valued in the current market context.