Is Graco, Inc. overvalued or undervalued?

As of 12 September 2025, the valuation grade for Graco, Inc. has moved from fair to expensive, indicating a shift towards overvaluation. The company appears overvalued based on its current metrics, including a P/E ratio of 29, a Price to Book Value of 5.74, and an EV to EBITDA of 20.37. In comparison to peers, Graco's P/E ratio is lower than Entegris, Inc. at 42.41 and Nordson Corp. at 46.99, but still reflects a premium valuation within its industry.
Despite Graco's strong performance metrics, such as a ROCE of 29.39% and a ROE of 19.69%, the stock has underperformed relative to the S&P 500 over various time frames, with a 1Y return of 1.59% compared to the S&P 500's 17.14%. This trend reinforces the notion that Graco, Inc. is currently overvalued.