Is nVent Electric Plc overvalued or undervalued?

As of 21 April 2025, the valuation grade for nVent Electric Plc has moved from fair to expensive, indicating a shift in perception regarding its market value. The company appears to be overvalued based on its current metrics, with a P/E ratio of 39, a Price to Book Value of 3.10, and an EV to EBITDA ratio of 20.26, all of which are significantly higher than the industry averages.
In comparison to its peer, which has a P/E ratio of 40.355, nVent Electric Plc's valuation does not justify its premium pricing, especially considering its lower ROE of 7.88% and a relatively high EV to Sales ratio of 3.61. The recent stock performance shows that while nVent has outperformed the S&P 500 over the past month with an 8.46% return compared to the index's 3.83%, its one-year return of -9.45% suggests that the stock may not be a sustainable investment at its current valuation.