Is Crane NXT Co. overvalued or undervalued?

As of 7 May 2025, Crane NXT Co. has moved from a fair valuation to an expensive rating. The company appears overvalued based on its current metrics, with a P/E ratio of 21, a Price to Book Value of 3.47, and an EV to EBITDA ratio of 12.34. In comparison, its peers such as Franklin Electric Co., Inc. have a P/E of 20.97 and an EV to EBITDA of 12.50, while Axcelis Technologies, Inc. shows a more attractive valuation with a P/E of 12.36 and an EV to EBITDA of 8.10.
The valuation metrics suggest that Crane NXT Co. is trading at a premium compared to its industry peers. Additionally, the company's recent stock performance has been underwhelming, with a year-to-date return of -6.65%, contrasting with a positive return of 2.44% for the S&P 500. This further reinforces the conclusion that Crane NXT Co. is overvalued in the current market environment.