Is Brady Corp. overvalued or undervalued?

As of 18 November 2024, Brady Corp. has moved from an attractive to a fair valuation grade. The company appears to be fairly valued at this time. Key ratios include a P/E ratio of 18, an EV to EBITDA of 12.41, and a PEG ratio of 5.64, which suggests that while the company has strong earnings, its growth expectations may be overly optimistic compared to its current price.
When compared to peers, Brady Corp.'s P/E ratio of 17.67 is higher than YETI Holdings, Inc. at 13.84 and LCI Industries at 15.51, indicating that Brady may be priced at a premium relative to these competitors. Additionally, Brady's ROCE of 21.47% and ROE of 16.69% reflect solid profitability, yet the high PEG ratio suggests that future growth may not justify the current valuation. Recent stock performance shows that Brady has underperformed the S&P 500 year-to-date, which further reinforces the assessment of a fair valuation.