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 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 Simpson Manufacturing Co., Inc. have a P/E of 26.38, while SPX Technologies, Inc. shows a significantly higher P/E of 45.73, suggesting that A. O. Smith is relatively more attractively priced within its industry.
Recent stock performance shows that A. O. Smith has underperformed against the S&P 500 over the past year, with a return of -11.48% compared to the S&P 500's 14.08%. However, it has outperformed the index over the past week with a return of 2.89% versus 1.70% for the S&P 500. Overall, the company’s valuation metrics suggest it is fairly valued in the current market context.