Is Gates Industrial Corp. Plc overvalued or undervalued?

As of 28 November 2025, the valuation grade for Gates Industrial Corp. Plc moved from fair to expensive, indicating a shift towards overvaluation. The company appears overvalued based on its current metrics, with a P/E ratio of 23, a Price to Book Value of 1.81, and an EV to EBITDA ratio of 10.13. In comparison to peers, Gates has a higher P/E ratio than Zurn Elkay Water Solutions Corp. at 43.78 and Watts Water Technologies, Inc. at 28.42, which suggests that it may not be justified in its current valuation.
Furthermore, the company's recent stock performance shows a 1-week return of 4.36% compared to the S&P 500's 3.73%, but it underperformed over the longer term, with a 1-year return of 2.89% against the S&P 500's 14.18%. This trend reinforces the notion that Gates Industrial Corp. Plc is currently overvalued in the market.