Is IDEX Corp. overvalued or undervalued?

As of 23 May 2025, IDEX Corp. has moved from a valuation grade of very expensive to expensive, indicating a slight improvement in its perceived value. However, the company remains overvalued based on its current metrics. The P/E ratio stands at 32, which is above the peer average of approximately 31.10, while the EV to EBITDA ratio is 20.22 compared to the peer average of 19.47. Additionally, the Price to Book Value is 4.20, suggesting that the stock is trading at a premium relative to its book value.
In comparison to its peers, IDEX Corp. shows a relatively high valuation, which is further supported by its low ROCE of 13.18% and ROE of 12.96%. The company's recent performance has lagged behind the S&P 500, with a year-to-date return of -17.47% compared to the index's 2.44%. Overall, IDEX Corp. is currently overvalued, and investors may want to exercise caution given its elevated valuation ratios and underperformance relative to broader market indices.