Is AMETEK, Inc. overvalued or undervalued?

As of 1 May 2025, AMETEK, Inc. has moved from an attractive to a very attractive valuation grade, indicating a strong positive shift in its perceived value. The company is currently considered undervalued. Key ratios include a P/E ratio of 34, an EV to EBITDA of 22.29, and a PEG ratio of 4.40, which suggest that while the company is priced higher than some peers, its growth potential may justify this premium.
In comparison, Eaton Corp. Plc has a P/E ratio of 31.62 and an EV to EBITDA of 23.15, indicating that AMETEK is relatively more attractive despite its higher P/E. The company's return on capital employed (ROCE) stands at 15.72%, which is a strong indicator of efficient capital use. Additionally, AMETEK's recent stock performance has lagged behind the S&P 500 over the past year, which may further support the argument for its undervaluation.