Is Lennox International, Inc. overvalued or undervalued?

As of 29 May 2025, the valuation grade for Lennox International, Inc. has moved from fair to attractive, indicating a positive shift in its perceived value. The company is currently deemed undervalued based on its strong financial metrics, including a P/E ratio of 59, a Price to Book Value of 55.76, and an impressive ROE of 94.87%.
In comparison to its peers, Lennox International has a higher P/E ratio than Trane Technologies Plc, which stands at 37.47, and Parker-Hannifin Corp. at 33.82, both of which are considered fair or expensive. Additionally, Lennox's EV to EBITDA ratio of 43.08 is significantly higher than Trane's 26.60, suggesting that while it may appear pricey, its growth potential could justify the premium. Notably, the company's recent stock performance has outpaced the S&P 500 over the last week, reinforcing its attractiveness in the current market landscape.