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. The company is currently considered overvalued based on its high valuation ratios. The P/E ratio stands at 38, significantly above the industry average, while the Price to Book Value is 8.04, and the EV to EBITDA ratio is 23.11, indicating a premium valuation relative to its peers.
In comparison to its peers, Carpenter Technology Corp. has a P/E ratio of 38.67 against ATI, Inc. at 24.85 and Centrus Energy Corp. at 38.83, both of which are in a fair valuation range. The PEG ratio of 0.22 suggests that the stock may be undervalued in terms of growth, yet the overall high valuation metrics indicate that it is trading at a premium. Notably, while Carpenter Technology has outperformed the S&P 500 with a year-to-date return of 43.03% compared to 13.31%, its recent performance over one month shows a decline of -0.47%, contrasting with the S&P 500's gain of 3.95%.