Is Carpenter Technology Corp. overvalued or undervalued?

As of 19 September 2025, the valuation grade for Carpenter Technology Corp. has moved from very expensive to expensive, indicating a slight improvement in perceived value but still suggesting overvaluation. The company is currently considered overvalued based on its P/E ratio of 38, which is significantly higher than the industry average, and an EV to EBITDA ratio of 23.11, also above the peer average. Additionally, the PEG ratio of 0.22 suggests that the stock may be priced too high relative to its growth potential.
In comparison to its peers, Carpenter Technology Corp. has a higher P/E ratio than Centrus Energy Corp. at 38.83 and ATI, Inc. at 24.85, both of which are classified as fair. The company's recent stock performance shows a year-to-date return of 41.32%, significantly outpacing the S&P 500's 13.31%, and a one-year return of 54.73% compared to the S&P 500's 16.64%. However, the long-term returns indicate that while the stock has performed well recently, its high valuation metrics suggest caution for potential investors.