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, with a P/E ratio of 18, a Price to Book Value of 4.42, and an EV to EBITDA of 17.50. In comparison to 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.
In the context of recent performance, Carrier Global Corp. has underperformed relative to the S&P 500, with a year-to-date return of -17.67% compared to the index's 13.30%. This trend reinforces the notion that the stock may be overvalued given its lackluster returns despite a high valuation relative to its peers.