Is Dover Corp. overvalued or undervalued?

As of 29 August 2025, the valuation grade for Dover Corp. has moved from fair to attractive, indicating a more favorable assessment of its value. The company appears undervalued based on its current metrics, with a P/E ratio of 44, a Price to Book Value of 6.89, and an EV to EBITDA of 29.52. In comparison, its peer Xylem, Inc. has a lower P/E of 37.49 but a significantly lower EV to EBITDA of 21.47, while Ingersoll Rand, Inc. is considered very expensive with a P/E of 52.55.
Despite the attractive valuation, Dover Corp. has underperformed against the S&P 500 in the short to medium term, with a year-to-date return of -7.89% compared to the S&P 500's 12.22%. However, over a three-year period, Dover Corp. has returned 42.92%, which is still below the S&P 500's impressive 70.41%. This mixed performance suggests that while the stock may be undervalued, it has faced challenges in the market recently.