Is Gates Industrial Corp. Plc overvalued or undervalued?

As of 28 November 2025, the valuation grade for Gates Industrial Corp. Plc has moved from fair to expensive, indicating a shift towards overvaluation. The company appears overvalued based on its P/E ratio of 23, which is significantly lower than the peer average of 27.60, and its EV to EBITDA ratio of 10.13, which is also below the industry benchmark. Additionally, the Price to Book Value stands at 1.81, suggesting that the stock may not be justified at its current price level.
In comparison to its peers, Zurn Elkay Water Solutions Corp. has a much higher P/E ratio of 43.78, while Watts Water Technologies, Inc. presents a more attractive valuation with a P/E of 28.42. Furthermore, Gates Industrial's recent stock performance shows a year-to-date return of 10.65%, which lags behind the S&P 500's 16.45%, reinforcing the notion of overvaluation. Overall, the combination of these valuation metrics and peer comparisons suggests that Gates Industrial Corp. Plc is currently overvalued.