Is ESAB Corp. overvalued or undervalued?

As of 1 May 2025, the valuation grade for ESAB Corp. has moved from attractive to fair, 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 24, an EV to EBITDA of 16.04, and a PEG ratio of 1.70. In comparison to its peers, Zurn Elkay Water Solutions Corp. is very expensive with a P/E of 43.78, while MKS Instruments, Inc. is attractive with a P/E of 23.90.
Despite the fair valuation, ESAB Corp. has underperformed relative to the S&P 500 in the year-to-date period, returning -8.59% compared to the index's 12.22%. This underperformance may suggest that the market is currently pricing the stock conservatively, reflecting its fair valuation status.