Is Carrier Global Corp. overvalued or undervalued?

Oct 20 2025 12:29 PM IST
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As of October 17, 2025, Carrier Global Corp. is considered overvalued due to a P/E ratio of 18 and underwhelming stock performance, despite a strong ROE of 24.96% and a high dividend yield of 144.14%.
As of 17 October 2025, the valuation grade for Carrier Global Corp. moved from fair to expensive, indicating a shift towards overvaluation. The company appears overvalued based on key metrics, including a P/E ratio of 18, a Price to Book Value of 4.42, and an EV to EBITDA of 25.07. In comparison to its peers, GE Aerospace has a significantly higher P/E ratio of 136.79, while Lam Research Corp. shows a more attractive P/E of 57.14.

Despite a strong ROE of 24.96% and a high dividend yield of 144.14%, the recent stock performance has been underwhelming, with a year-to-date return of -17.67% compared to the S&P 500's 13.30%. This underperformance reinforces the notion that Carrier Global Corp. is currently overvalued.
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