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 market perception. 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, peers such as Oceaneering International, Inc. have a P/E of 13.23, while Crane NXT Co. shows a P/E of 24.21, highlighting a range of valuations within the industry.
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 contrast underscores the challenges the company faces in maintaining investor confidence, suggesting that while it is currently fairly valued, there may be underlying concerns that could affect its future performance.