Is Lennox International, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Lennox International, Inc. moved from expensive to attractive, indicating a shift towards a more favorable assessment. The company appears to be undervalued, particularly when considering its P/E ratio of 59, a PEG ratio of 3.14, and an EV to EBITDA ratio of 43.08, which suggest that the stock may be priced lower than its growth potential warrants.
In comparison to its peers, Lennox's P/E ratio is higher than Xylem, Inc. at 37.49 and Dover Corp. at 43.35, but lower than Ingersoll Rand, Inc. at 52.55. This highlights that while Lennox is positioned attractively within its industry, it still commands a premium compared to some competitors. Notably, the company's recent stock performance has lagged behind the S&P 500, with a year-to-date return of -14.17% compared to the index's 13.30%, yet it has outperformed the S&P 500 over the last three years with a return of 135.90%.