Is Carpenter Technology Corp. overvalued or undervalued?

As of 24 October 2025, Carpenter Technology Corp. has moved from expensive to very expensive, indicating a significant shift in its valuation perception. The company is overvalued based on its current metrics, which include 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 ratio of 24.85, and Centrus Energy Corp. has a similar P/E of 38.83, suggesting that Carpenter Technology Corp. is trading at a premium relative to its peers.
The company's recent performance has been impressive, with a year-to-date return of 85.15% compared to the S&P 500's 15.47%, and a staggering 3-year return of 768.94% against the S&P 500's 78.85%. However, despite these strong returns, the elevated valuation ratios indicate that Carpenter Technology Corp. may not sustain its current price levels, reinforcing the conclusion that it is overvalued.