Is Applied Industrial Technologies, Inc. overvalued or undervalued?

As of 31 July 2025, the valuation grade for Applied Industrial Technologies, Inc. has moved from expensive to fair. The company is currently fairly valued based on its metrics. Key ratios include a P/E ratio of 30, an EV to EBITDA of 21.28, and a PEG ratio of 3.07, which indicate a reasonable valuation relative to its earnings growth potential.
In comparison to its peers, WESCO International, Inc. has a lower P/E of 20.94 and a more favorable EV to EBITDA of 13.40, while Pool Corp. is considered very expensive with a P/E of 30.46. Notably, Applied Industrial Technologies has outperformed the S&P 500 over the 1-year period with a return of 22.29% compared to the index's 17.14%, and it has shown significant growth over the 5-year period with a return of 370.49% versus 96.61% for the S&P 500.