Is Carrier Global Corp. overvalued or undervalued?

As of 29 July 2025, Carrier Global Corp. has moved from an attractive to a very expensive valuation grade. The company appears overvalued based on its current metrics, including a P/E ratio of 18, a Price to Book Value of 4.42, and an EV to EBITDA ratio of 17.50. Comparatively, GE Aerospace has a much higher P/E ratio of 136.79, while Parker-Hannifin Corp. is more reasonably valued with a P/E of 37.22.
In terms of performance, Carrier Global Corp. has underperformed relative to the S&P 500, with a year-to-date return of -10.49% compared to the S&P 500's 12.22%. This trend continues over one year, where the company has returned -21.86% against the S&P 500's 17.14%. Overall, the valuation metrics and recent performance suggest that Carrier Global Corp. is overvalued in the current market.