Is Hexcel Corp. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Hexcel Corp. has moved from fair to very expensive, indicating a significant increase in perceived overvaluation. The company is considered overvalued based on key ratios such as a P/E ratio of 35, an EV to EBITDA of 19.31, and a Price to Book Value of 3.92. In comparison, peers like Textron, Inc. and Huntington Ingalls Industries, Inc. have P/E ratios of 17.37 and 27.01, respectively, highlighting Hexcel's premium valuation relative to its industry.
Additionally, Hexcel's recent stock performance has lagged behind the S&P 500, with a year-to-date return of -1.48% compared to the index's 13.30%, further reinforcing the notion of overvaluation. The company's PEG ratio of 0.31 suggests that while growth may be anticipated, the current price does not align with its earnings growth potential, contributing to the overall assessment of being overvalued.