Is Generac Holdings, Inc. overvalued or undervalued?

As of 12 September 2025, the valuation grade for Generac Holdings, Inc. has moved from fair to attractive, indicating a positive shift in its valuation outlook. The company appears to be undervalued, supported by a P/E ratio of 22, a PEG ratio of 0.33, and an EV to EBITDA ratio of 13.57, which suggest that it is trading at a discount relative to its growth potential and earnings capacity.
In comparison to its peers, Generac's P/E ratio of 30.37 is lower than that of Lumentum Holdings, Inc. at 172.90, which is deemed expensive, while Belden, Inc. shows a more favorable P/E of 24.33, classified as very attractive. Notably, Generac has outperformed the S&P 500 with a year-to-date return of 18.70% compared to the index's 12.22%, although it has lagged in the longer term, particularly over three and five years.