Is Fortive Corp. overvalued or undervalued?

As of 8 September 2025, Fortive Corp. has moved from an expensive to a fair valuation grade. The company appears to be fairly valued based on its current metrics. Key valuation ratios include a P/E ratio of 30, an EV to EBITDA of 16.23, and a Price to Book Value of 2.42. In comparison, Rockwell Automation has a significantly higher P/E ratio of 57.64, while Coherent Corp. presents a more attractive EV to EBITDA of 17.12.
Despite the fair valuation, Fortive's stock has underperformed relative to the S&P 500, with a year-to-date return of -13.58% compared to the index's 12.22%. This underperformance over multiple periods, particularly in the 1Y and 3Y returns, suggests that while the stock is fairly valued, there may be concerns about its growth prospects relative to the broader market.