Is Lennox International, Inc. overvalued or undervalued?

As of 30 June 2025, the valuation grade for Lennox International, Inc. has moved from fair to attractive, indicating a positive shift in its perceived value. The company appears to be undervalued, supported by a P/E ratio of 59, a Price to Book Value of 55.76, and an EV to EBITDA ratio of 43.08, which suggest that despite high valuations, the company's strong fundamentals may justify these figures.
In comparison to its peers, Lennox's P/E ratio is significantly higher than Xylem, Inc. at 37.49 and Dover Corp. at 43.35, indicating that while it is attractive, it is also priced at a premium relative to some competitors. Notably, Lennox has a robust ROE of 94.87% and a high dividend yield of 25.86%, further emphasizing its strong financial performance. Over the past year, Lennox's stock has underperformed against the S&P 500, with a return of -10.07% compared to the index's 17.14%, which may suggest a potential buying opportunity given its attractive valuation.