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

As of 17 October 2025, the valuation grade for A. O. Smith Corp. has 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 valuation ratios include a P/E ratio of 22, an EV to EBITDA of 15.25, and a Price to Book Value of 6.42. In comparison, peers such as SPX Technologies, Inc. have a significantly higher P/E ratio of 45.73, while Simpson Manufacturing Co., Inc. has a P/E ratio of 26.38, suggesting that A. O. Smith is relatively more attractively priced within its industry.
In terms of recent performance, A. O. Smith's stock has returned 2.20% year-to-date, which is notably lower than the S&P 500's return of 13.30% over the same period, highlighting a potential underperformance relative to the broader market.