Is Albany International Corp. overvalued or undervalued?

As of 11 August 2025, the valuation grade for Albany International Corp. has moved from expensive to very expensive, indicating a significant concern regarding its current pricing. The company appears to be overvalued based on its high P/E ratio of 29, a Price to Book Value of 2.87, and an EV to EBIT of 21.46. In comparison, peers such as Applied Industrial Technologies, Inc. have a P/E of 33.09 and EV to EBITDA of 23.75, while MKS Instruments, Inc. shows a more attractive P/E of 23.90 and EV to EBITDA of 12.54, highlighting Albany's relatively high valuation metrics.
Recent stock performance further underscores this valuation concern, as Albany International Corp. has underperformed against the S&P 500, with a year-to-date return of -27.97% compared to the index's 12.22%. This trend of underperformance over multiple periods suggests that the market may be reassessing the company's growth prospects, reinforcing the view that it is currently overvalued.