Is IDEX Corp. overvalued or undervalued?

As of 17 October 2025, the valuation grade for IDEX Corp. has moved from fair to expensive, indicating that the stock is overvalued. The company exhibits a P/E ratio of 32, significantly higher than its peer average of 29.59, and a Price to Book Value of 4.20, which also suggests a premium valuation compared to industry standards. Additionally, the EV to EBITDA ratio stands at 20.22, further reinforcing the perception of overvaluation.
In comparison to peers, IDEX Corp.'s valuation ratios highlight its expensive positioning within the industrial manufacturing sector. Notably, while IDEX Corp. has a robust dividend yield of 128.14%, its return on equity (ROE) of 12.96% and return on capital employed (ROCE) of 13.18% do not justify the high valuation multiples. Furthermore, the stock has underperformed against the S&P 500 over various periods, with a year-to-date return of -20.54% compared to the index's 13.30%, indicating a concerning trend for investors.