Is Fortive Corp. overvalued or undervalued?

As of 22 April 2025, Fortive Corp. has moved from a valuation grade of very expensive to expensive. The company is currently considered overvalued based on its financial metrics. The P/E ratio stands at 30, while the industry average P/E is significantly lower, indicating a premium valuation. Additionally, the EV to EBITDA ratio is 16.23, which is higher than peers like KLA Corp. at 44.25 and Emerson Electric Co. at 26.88, further supporting the overvaluation assessment.
In comparison to its peers, Fortive's ROCE of 8.86% and ROE of 8.06% suggest that it is not generating returns commensurate with its valuation. The company's recent stock performance has lagged behind the S&P 500, with a year-to-date return of -6.24% compared to the index's 2.44%. Overall, these factors indicate that Fortive Corp. is overvalued in the current market environment.