Is EnerSys overvalued or undervalued?

As of 7 August 2025, the valuation grade for EnerSys has moved from very attractive to attractive, indicating a shift in its perceived value. The company appears to be fairly valued based on its current metrics, with a P/E ratio of 12, a Price to Book Value of 2.37, and an EV to EBITDA of 9.02. Comparatively, EnerSys has a PEG ratio of 0.72, which suggests it is undervalued relative to its growth prospects, especially when compared to peers like Generac Holdings, which has a P/E of 30.37, and Lumentum Holdings, which is considered expensive with a P/E of 172.90.
In terms of recent performance, EnerSys has outperformed the S&P 500 over various time frames, including a year-to-date return of 20.49% compared to the S&P 500's 12.22%, reinforcing the narrative that the stock is positioned well in the market. Overall, while EnerSys is currently fairly valued, its strong performance and favorable ratios suggest it may still hold potential for future appreciation.