Is Mueller Water Products, Inc. overvalued or undervalued?

As of 7 May 2025, the valuation grade for Mueller Water Products, Inc. has moved from very expensive to expensive, indicating a shift in perception regarding its market value. The company is currently considered overvalued. Key ratios include a P/E ratio of 25, an EV to EBITDA of 13.52, and a PEG ratio of 0.78, which suggests that while the company has growth potential, its current price may not justify the earnings growth relative to its peers.
In comparison to its peers, Mueller Water Products, Inc. has a P/E ratio of 23.35, which is higher than Gates Industrial Corp. Plc at 22.68 but lower than Modine Manufacturing Co. at 25.10. The EV to EBITDA ratio of 12.88 for Mueller is also more favorable than that of Enpro, Inc. at 16.76, yet it still reflects a premium valuation. Notably, the company's stock has outperformed the S&P 500 over the past year with a return of 36.26% compared to the index's 10.26%, which may have contributed to its current expensive valuation status.