Is Pentair plc overvalued or undervalued?

As of 7 July 2025, the valuation grade for Pentair plc has moved from fair to expensive, indicating that the stock is overvalued. The company exhibits a P/E ratio of 22, a price to book value of 4.51, and an EV to EBITDA ratio of 17.37, all of which suggest that the stock is trading at a premium compared to its earnings and assets. In comparison, peers such as Xylem, Inc. have a higher P/E ratio of 37.49, while Dover Corp. presents a more attractive valuation with a P/E of 43.35.
Despite the recent overvaluation, Pentair has shown strong performance with a 1-year return of 19.30%, outperforming the S&P 500's return of 17.14%. However, its 10-year return of 139.57% lags behind the S&P 500's impressive 231.64%, further emphasizing the potential concerns regarding its current valuation.