Is Carrier Global Corp. overvalued or undervalued?

As of 21 May 2025, Carrier Global Corp. has moved from an attractive to a very attractive valuation grade. The company is currently undervalued, with a P/E ratio of 18, a PEG ratio of 0.11, and an impressive dividend yield of 144.14%. In comparison, GE Aerospace is considered very expensive with a P/E of 123.69, while Lam Research Corp. is attractive with a P/E of 58.18.
Carrier's strong return on equity (ROE) of 24.96% and return on capital employed (ROCE) of 12.10% further support its undervaluation. The company's recent performance has outpaced the S&P 500, with a year-to-date return of 5.16% compared to the S&P 500's 2.44%. Overall, the metrics indicate that Carrier Global Corp. presents a compelling investment opportunity.