Is Carrier Global Corp. overvalued or undervalued?

As of 17 October 2025, Carrier Global Corp. has moved from a fair to an expensive valuation grade. The company appears to be overvalued based on its current metrics. Key ratios include a P/E ratio of 18, an EV to EBITDA of 17.50, and a Price to Book Value of 4.42, which are significantly higher than many peers in the industry. For instance, GE Aerospace has a P/E of 136.79, while Trane Technologies Plc has a more reasonable P/E of 35.38, highlighting Carrier's relative overvaluation.
In terms of recent performance, Carrier Global Corp. has underperformed compared to the S&P 500, with a year-to-date return of -17.67% versus the S&P's 13.30%. This trend is further emphasized by a one-year return of -30.99% compared to the S&P's 14.08%, reinforcing the notion that the stock may not justify its current price amidst a challenging market environment.