Is nVent Electric Plc overvalued or undervalued?

As of 31 October 2025, the valuation grade for nVent Electric Plc moved from fair to expensive. The company appears overvalued given its high P/E ratio of 39, a Price to Book Value of 3.10, and an EV to EBITDA ratio of 15.89, all of which exceed industry norms. In comparison, peers like Jabil, Inc. have a P/E of 63.04 and an EV to EBITDA of 23.25, indicating that while nVent Electric Plc is overvalued, it is not the most extreme in its sector.
The company's stock has performed exceptionally well, with a year-to-date return of 67.77% compared to the S&P 500's 16.30%, and a remarkable 5-year return of 533.52% against the S&P 500's 109.18%. This strong performance may suggest investor confidence, but the elevated valuation ratios indicate that the stock may not be a prudent investment at current levels.