Is Hillenbrand, Inc. overvalued or undervalued?

As of 7 August 2024, the valuation grade for Hillenbrand, Inc. has moved from expensive to risky, indicating a shift in perception regarding its financial health. The company appears to be overvalued based on its current metrics, with a P/E ratio of 15, an EV to EBITDA of 6.71, and a Price to Book Value of 1.13, which are not competitive compared to peers like Mueller Industries, Inc. with a P/E of 18.16 and Flowserve Corp. at 28.58.
Additionally, Hillenbrand's recent stock performance has been poor, with a year-to-date return of -17.77%, significantly underperforming the S&P 500's 12.22% return over the same period. This underperformance, combined with its valuation ratios, suggests that the stock is not only risky but also overvalued in the current market context.