Is Flowserve Corp. overvalued or undervalued?

As of 10 June 2025, Flowserve Corp. has moved from an expensive to a fair valuation grade. The company is currently fairly valued based on its financial metrics. The P/E ratio stands at 25, while the EV to EBITDA ratio is 15.93, and the PEG ratio is 2.87. These ratios indicate that the company's valuation is aligned with its earnings potential, although it remains on the higher side compared to some peers.
In comparison to its peers, Flowserve Corp. has a P/E ratio higher than Pentair plc at 21.53 and ITT, Inc. at 22.89, but lower than Woodward, Inc. at 42.64. The EV to EBITDA ratio of 15.93 is also more favorable than that of Pentair plc at 16.85. Despite a challenging year with a YTD return of -19.28% compared to the S&P 500's 2.44%, Flowserve's financial performance, particularly its ROCE of 16.90% and ROE of 16.74%, suggests it is maintaining operational efficiency. Overall, the company appears to be fairly valued in the current market context.