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. The company appears to be fairly valued at this time. Key valuation 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, peers such as Modine Manufacturing Co. have a significantly higher P/E ratio of 36.40, while Oceaneering International, Inc. shows a more attractive P/E of 13.23.
Despite recent strong performance with a 1-week return of 8.36% compared to the S&P 500's 1.70%, Kennametal has struggled over longer periods, with a year-to-date return of -7.74% versus the S&P 500's 13.30%. This suggests that while the stock may be currently fairly valued, its longer-term performance has not kept pace with broader market trends.