Is IDEX Corp. overvalued or undervalued?

As of 23 April 2024, the valuation grade for IDEX Corp. has moved from fair to expensive, indicating that the company is overvalued. Key valuation ratios reveal a P/E ratio of 32, a Price to Book Value of 4.20, and an EV to EBITDA of 20.22, all of which are significantly higher than the peer average P/E of 29.59 and EV to EBITDA of 17.87. This suggests that IDEX Corp. is trading at a premium compared to its industry peers.
In comparison to its recent performance, IDEX Corp. has underperformed against the S&P 500, with a year-to-date return of -22.57% compared to the index's 12.22%. This trend of underperformance over multiple periods reinforces the notion that the stock may be overvalued in the current market environment.