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

As of 22 August 2025, the valuation grade for Air Products & Chemicals, Inc. has moved from very expensive to expensive. The company is currently considered overvalued based on its valuation metrics. The P/E ratio stands at 16, while the EV to EBITDA ratio is 19.54, and the PEG ratio is notably low at 0.21, indicating potential growth at a reasonable price compared to its earnings growth.
In comparison to its peers, Linde Plc has a significantly higher P/E of 35.69 and Ecolab, Inc. has a P/E of 42.93, suggesting that Air Products may be undervalued relative to its growth prospects despite its current expensive rating. Recent stock performance shows that over the past year, Air Products has returned 1.79%, which lags behind the S&P 500's 17.14%, reinforcing the notion that the stock may be overvalued in the current market context.