Is Crane Co. overvalued or undervalued?

As of 28 April 2025, Crane Co. has moved from a fair to an attractive valuation grade, indicating a shift in market perception. The company is currently considered undervalued, with a P/E ratio of 34, which is higher than the industry average of 26.81 for peers like Teledyne Technologies, Inc. and Textron, Inc. The EV to EBITDA ratio stands at 22.68, while the PEG ratio is notably low at 0.87, suggesting that the stock may be undervalued relative to its growth potential.
In comparison to its peers, Crane Co. shows a strong return on capital employed (ROCE) of 24.60% and a return on equity (ROE) of 16.93%, both of which are indicators of efficient management and profitability. While companies like Leidos Holdings, Inc. are trading at a much lower P/E of 14.21, Crane Co.'s growth prospects and recent performance, including a year-to-date return of 21.08% compared to the S&P 500's 2.44%, reinforce the argument for its undervaluation.