Is Carpenter Technology Corp. overvalued or undervalued?

As of 26 September 2025, the valuation grade for Carpenter Technology Corp. moved from expensive to very expensive. The company is currently overvalued based on its high valuation ratios, including a P/E ratio of 38, a Price to Book Value of 8.04, and an EV to EBITDA of 23.11. In comparison, ATI, Inc. has a more reasonable P/E of 24.85 and EV to EBITDA of 16.01, while Centrus Energy Corp. shows a P/E of 38.83 and an EV to EBITDA of 32.22, indicating that Carpenter Technology Corp. is priced significantly higher than its peers.
Despite the overvaluation, Carpenter Technology Corp. has demonstrated strong performance with a year-to-date return of 47.81%, significantly outperforming the S&P 500's return of 12.96% over the same period. However, the high valuation ratios suggest that the stock may not be sustainable at its current price levels.