Is Air Products & Chemicals, Inc. overvalued or undervalued?

As of 1 May 2025, the valuation grade for Air Products & Chemicals, Inc. has moved from attractive to expensive, indicating a shift in perception regarding its market value. The company is currently considered overvalued. Key ratios include a P/E ratio of 16, an EV to EBITDA of 29.85, and a PEG ratio of 0.21, which suggests that despite a low growth expectation, the stock price is high relative to earnings growth.
In comparison to its peers, Air Products & Chemicals, Inc. has a lower P/E ratio than Linde Plc, which stands at 35.40, and Ecolab, Inc. at 41.56, both of which are rated fair. Notably, Dow, Inc. and LyondellBasell Industries NV are rated very attractive with P/E ratios of 32.89 and 11.05, respectively. The recent stock performance shows that Air Products has underperformed against the S&P 500 over the past year, with a return of just 0.10% compared to the S&P 500's 10.26%, further reinforcing the notion of overvaluation.