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, specifically a P/E ratio of 19, which is significantly higher than peers like Allison Transmission Holdings, Inc. at 9.98 and Atmus Filtration Technologies, Inc. at 18.06. Additionally, the EV to EBITDA ratio of 5.22 is lower than Allison's 8.17, suggesting that PHINIA is not justified in its higher valuation.
In comparison to the S&P 500, PHINIA's one-year return of 15.93% slightly outperformed the index's 14.08%, but its year-to-date return of 10.13% lags behind the S&P's 13.30%. Overall, the combination of high valuation ratios and the recent grade change suggests that PHINIA, Inc. is overvalued in the current market.