Is PHINIA, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for PHINIA, Inc. has moved from attractive to very expensive, indicating a shift towards overvaluation. The company appears overvalued based on its current metrics, with a P/E ratio of 19, which is significantly higher than peers such as Allison Transmission Holdings, Inc. at 9.98 and Atmus Filtration Technologies, Inc. at 18.06. Additionally, the EV to EBITDA ratio stands at 5.22, while Allison's is 8.17, further highlighting the disparity in valuation among competitors.
In comparison to the S&P 500, PHINIA has shown a mixed performance, with a year-to-date return of 10.13%, which lags behind the index's 13.30%. This suggests that while the stock has performed well recently, its valuation metrics relative to peers indicate that it may not be a compelling investment at current levels.