Is Albany International Corp. overvalued or undervalued?

As of 10 March 2025, Albany International Corp. has moved from a fair valuation to a very expensive rating. The company is currently overvalued, with a P/E ratio of 29, significantly higher than its peer Franklin Electric Co., Inc., which has a P/E of 20.97. Additionally, Albany's EV to EBITDA stands at 12.95, compared to Franklin's 12.50, further indicating a premium valuation relative to its peers.
The company's Price to Book Value is 2.87, and its ROCE is 11.23%, suggesting that while it generates some returns, the high valuation multiples may not be justified by its performance metrics. Over the past year, Albany has underperformed against the S&P 500, with a return of -17.76% compared to the index's 10.26%, reinforcing the notion that the stock may be overpriced in the current market environment.