Is Kennametal, Inc. overvalued or undervalued?

As of 14 November 2025, Kennametal, Inc. has moved from an expensive to a fair valuation grade. The company appears to be fairly valued based on its current metrics. Key ratios include a P/E ratio of 14, an EV/EBITDA of 6.87, and a Price to Book Value of 1.35. In comparison, peers such as Modine Manufacturing Co. have a P/E of 36.40, while Gates Industrial Corp. Plc has an EV/EBITDA of 11.52, indicating that Kennametal is more attractively priced relative to its peers.
Despite its fair valuation, Kennametal's recent stock performance has lagged behind the S&P 500, with a 1-year return of -6.24% compared to the index's 13.19%. This underperformance over the past year suggests that while the stock is fairly valued, it may face challenges in gaining traction in the market.