Is BWX Technologies, Inc. overvalued or undervalued?

As of 16 June 2025, BWX Technologies, Inc. has moved from a fair to an expensive valuation grade. The company is currently overvalued based on its high P/E ratio of 62, a Price to Book Value of 14.91, and an EV to EBITDA of 42.47. These ratios indicate that the stock is trading at a significant premium compared to its earnings and book value.
In comparison to its peers, BWX Technologies has a higher P/E ratio than CNH Industrial NV, which stands at 15.72, and a notably higher PEG ratio of 61.91 compared to BorgWarner, Inc.'s PEG of 0.2255. This suggests that BWX Technologies is not only overvalued relative to its earnings but also compared to its growth prospects. Additionally, while the stock has outperformed the S&P 500 in the past year with a return of 52.74% versus 10.26%, the current valuation metrics indicate that investors may be paying too much for future growth potential.