Is Kennametal, Inc. overvalued or undervalued?

As of 14 November 2025, the valuation grade for Kennametal, Inc. moved from expensive to fair. The company appears fairly valued based on its current metrics. 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 Gates Industrial Corp. Plc has an EV to EBITDA of 11.52, indicating that Kennametal is positioned more favorably in terms of valuation.
Despite recent stock performance showing a 22.27% return over the past month compared to the S&P 500's 1.35%, the longer-term outlook reveals a decline with a 1-year return of -6.24% versus the S&P 500's 13.19%. This suggests that while Kennametal may be fairly valued now, its stock performance has lagged behind the broader market over the longer term.