Is Enpro, Inc. overvalued or undervalued?

As of 22 August 2025, the valuation grade for Enpro, Inc. has moved from expensive to very expensive, indicating a significant increase in perceived overvaluation. The company is currently considered overvalued, with a P/E ratio of 45, an EV to EBITDA ratio of 17.07, and a Price to Book Value of 2.80. In comparison, peers such as ESAB Corp. have a P/E of 24.12 and an EV to EBITDA of 14.88, while Badger Meter, Inc. shows a P/E of 50.53 and an EV to EBITDA of 32.29, highlighting the relative overvaluation of Enpro.
Despite its high valuation, Enpro has demonstrated strong returns, with a year-to-date return of 31.86% compared to the S&P 500's 12.22%, and a remarkable 5-year return of 295.96% against the S&P 500's 96.61%. However, the elevated valuation ratios suggest that investors may be paying a premium that is not fully justified by the company's financial performance.