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 P/E ratio of 19, which is significantly higher than peers like Allison Transmission Holdings, Inc. with a P/E of 9.98 and Atmus Filtration Technologies, Inc. at 18.06. Additionally, PHINIA's EV to EBITDA ratio stands at 5.22, while its peers show a range of 6.50 to 14.62, further suggesting that PHINIA is priced at a premium compared to its industry counterparts.
In terms of returns, PHINIA has outperformed the S&P 500 over the past week with a return of 2.45% compared to the index's 1.70%, but it has lagged behind on a year-to-date basis, returning 10.13% versus the S&P 500's 13.30%. Overall, the combination of high valuation ratios and relative performance indicates that PHINIA, Inc. is currently overvalued in the market.