Is Flowserve Corp. overvalued or undervalued?

As of 2 September 2025, the valuation grade for Flowserve Corp. has moved from fair to expensive, indicating a shift towards overvaluation. The company appears overvalued based on its P/E ratio of 25, which is higher than the industry average, and a PEG ratio of 2.87, suggesting that the stock may not be growing fast enough to justify its price. Additionally, the EV to EBITDA ratio stands at 15.93, which also points towards a premium valuation compared to its peers.
In comparison to its peers, Flowserve Corp. has a P/E ratio of 28.58, significantly higher than ITT, Inc. at 26.26, which is rated as fair. Other peers like Woodward, Inc. are categorized as very expensive with a P/E ratio of 42.20, while Regal Rexnord Corp. is fair at 32.78. Despite Flowserve's strong recent performance, with a 1-year return of 23.13% compared to the S&P 500's 17.14%, the overall valuation metrics suggest that the stock is currently overvalued.