Is Atmus Filtration Technologies, Inc. overvalued or undervalued?

As of 7 May 2025, Atmus Filtration Technologies, Inc. has moved from a fair to attractive valuation grade, indicating a positive shift in its market standing. The company is currently considered undervalued, with a P/E ratio of 14, which is competitive compared to peers like Dana, Inc. at a P/E of 69.07 and Garrett Motion, Inc. at 7.23. Additionally, Atmus boasts a strong ROCE of 37.84% and an impressive ROE of 78.20%, further supporting its attractive valuation.
In comparison to its peers, Atmus's EV to EBITDA ratio stands at 11.98, which is favorable when juxtaposed with Dana's 6.78 and Garrett's 5.95. The company's PEG ratio of 2.07 suggests that while growth is priced in, it remains reasonable compared to the industry. Despite a recent decline in stock performance relative to the S&P 500 over the past month, Atmus has shown a robust 26.41% return over the past year, reinforcing its potential as an undervalued investment opportunity.