Is Kennametal, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Kennametal, Inc. has moved from attractive to fair, indicating a shift in its perceived value. Based on the current metrics, the company appears to be fairly valued. Key ratios include a P/E ratio of 14, an EV to EBITDA of 6.87, and a Price to Book Value of 1.35. In comparison to peers, Modine Manufacturing Co. has a P/E of 36.40, while Oceaneering International, Inc. shows a more favorable P/E of 13.23, suggesting that Kennametal is positioned competitively within its industry.
Despite its fair valuation, Kennametal's recent stock performance has been underwhelming, with a year-to-date return of -7.74%, significantly lagging behind the S&P 500's return of 13.30% over the same period. This trend continues over longer horizons, with a 5-year return of -34.36% compared to the S&P 500's 91.29%, reinforcing the notion that the stock may not be as attractive as its current valuation suggests.