Is Carpenter Technology Corp. overvalued or undervalued?

As of 4 September 2025, the valuation grade for Carpenter Technology Corp. has moved from expensive to very expensive, indicating a significant shift in its market perception. The company appears overvalued based on its current metrics, with a P/E ratio of 38, a Price to Book Value of 8.04, and an EV to EBITDA of 23.11. Comparatively, peers such as ATI, Inc. have a P/E of 24.85 and EV to EBITDA of 16.01, while Centrus Energy Corp. has a P/E of 38.83, suggesting that Carpenter Technology Corp. is trading at a premium relative to its industry.
In terms of recent performance, Carpenter Technology Corp. has outperformed the S&P 500 with a year-to-date return of 45.39% compared to the S&P 500's 12.22%. However, the substantial valuation ratios indicate that the stock may not be justified at its current price levels.