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 in perception regarding its valuation. The company appears to be overvalued based on its current metrics. The P/E ratio stands at 16, while the PEG ratio is notably low at 0.21, suggesting that the stock may not be priced appropriately relative to its growth potential. Additionally, the EV to EBITDA ratio is 19.54, which is relatively high compared to industry standards.
In comparison to peers, Linde Plc has a much higher P/E ratio of 35.69, indicating a premium valuation, while Ecolab, Inc. shows a P/E of 42.93, reflecting a fair valuation status. Both companies demonstrate stronger market positions compared to Air Products & Chemicals, which is currently rated expensive. Notably, the stock has underperformed significantly against the S&P 500, with a one-year return of -22.99% compared to the index's 14.08%, reinforcing the notion that the stock may be overvalued in the current market context.