Is Hubbell, Inc. overvalued or undervalued?

As of 1 May 2025, Hubbell, Inc. has moved from a fair to a very attractive valuation grade, indicating a significant improvement in its investment appeal. The company is currently undervalued, with a P/E ratio of 26, which is lower than its peer Acuity Brands, Inc. at 31.53, and a PEG ratio of 2.47, which is also competitive compared to Generac Holdings, Inc. at 0.31. Additionally, Hubbell boasts a robust ROE of 25.03% and an impressive ROCE of 23.30%, reflecting strong profitability metrics.
In comparison to its peers, Hubbell's EV to EBITDA ratio stands at 17.20, which is higher than Atkore, Inc.'s 4.78, further supporting its undervaluation narrative. Despite a recent dip in year-to-date performance, where it returned -5.78% compared to the S&P 500's 2.44%, the long-term outlook remains positive with a 3-year return of 126.83%. Overall, the valuation metrics suggest that Hubbell, Inc. presents a compelling investment opportunity at its current price of 394.69.