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 to be 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, peer companies such as Modine Manufacturing Co. have a P/E ratio of 36.40, while Gates Industrial Corp. Plc has an EV to EBITDA of 11.52, indicating that Kennametal is priced more attractively relative to these peers.
Recent stock performance shows that Kennametal has underperformed against the S&P 500, with a year-to-date return of 7.91% compared to the S&P 500's 14.49%. This underperformance, alongside its fair valuation, suggests that there may be potential for growth if market conditions improve.