Is Enerpac Tool Group Corp. overvalued or undervalued?

As of 18 December 2024, the valuation grade for Enerpac Tool Group Corp. has moved from very expensive to expensive. The company is currently considered overvalued. Key ratios include a P/E ratio of 36, an EV to EBITDA of 23.55, and a Price to Book Value of 8.14, all of which exceed industry averages.
In comparison with peers, Enerpac's P/E ratio of 36 is significantly higher than Modine Manufacturing Co.'s fair valuation P/E of 25.10 and also higher than Mueller Water Products, Inc.'s expensive P/E of 23.35. Despite a solid ROCE of 27.16% and a ROE of 22.52%, the elevated valuation metrics suggest that the stock is priced too high relative to its earnings potential. Notably, Enerpac has outperformed the S&P 500 over the past year with a return of 11.95% compared to the index's 10.26%, but this does not mitigate the concerns regarding its current valuation.