Is Franklin Electric Co., Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Franklin Electric Co., Inc. has moved from fair to expensive, indicating a shift towards overvaluation. The company appears to be overvalued based on its P/E ratio of 21, which is lower than its peer average of approximately 23.22, and an EV to EBITDA ratio of 12.60, also below the peer average of 13.68. Additionally, the Price to Book Value stands at 3.04, which further supports the notion of overvaluation when compared to its industry peers.
In terms of peer comparison, Chart Industries, Inc. has a P/E of 31.47, while MKS Instruments, Inc. shows a more attractive valuation with a P/E of 23.90. The stock has shown mixed performance against the S&P 500, with a year-to-date return of -0.15% compared to the S&P 500's 13.30%, and a 1-year return of -7.82% against the S&P 500's 14.08%. This underperformance reinforces the view that Franklin Electric Co., Inc. is currently overvalued.