Is Gates Industrial Corp. Plc overvalued or undervalued?

As of 17 October 2025, the valuation grade for Gates Industrial Corp. Plc has moved from attractive to very expensive. The company is currently overvalued based on its valuation metrics, including a P/E ratio of 23, an EV to EBITDA of 10.13, and a Price to Book Value of 1.81. In comparison, peers such as Zurn Elkay Water Solutions Corp. have a significantly higher P/E of 43.78, while Watts Water Technologies, Inc. presents a more attractive P/E of 28.42.
Despite the overvaluation, Gates Industrial has shown strong performance relative to the S&P 500, with a 1-year return of 41.38% compared to the index's 14.08%. This performance, however, does not mitigate the concerns regarding its current valuation metrics, which suggest that the stock may not be a prudent investment at this time.