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

As of 17 October 2025, the valuation grade for Air Products & Chemicals, Inc. has moved from very expensive to expensive, indicating a shift towards a less favorable valuation perspective. The company is currently considered overvalued based on its key financial 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, suggesting potential overvaluation relative to growth expectations.
In comparison to peers, Linde Plc has a significantly higher P/E ratio of 35.69, while Ecolab, Inc. shows a P/E of 42.93, indicating that Air Products & Chemicals, Inc. is priced lower than these competitors despite its expensive valuation grade. Furthermore, the company's stock has underperformed relative to the S&P 500 across multiple periods, with a year-to-date return of -12.70% compared to the S&P 500's 13.30%, reinforcing the notion of overvaluation.