Is Regal Rexnord Corp. overvalued or undervalued?

As of 5 August 2025, the valuation grade for Regal Rexnord Corp. has moved from expensive to fair. Based on the current metrics, the company appears to be fairly valued. Key ratios include a P/E ratio of 33, an EV to EBITDA of 11.97, and a PEG ratio of 0.14, which suggests strong growth potential relative to its price.
In comparison to peers, Regal Rexnord Corp. has a P/E ratio of 32.78, while Graco, Inc. is considered expensive at 29.51, and Lincoln Electric Holdings, Inc. is also fair with a P/E of 43.99. Despite its fair valuation, Regal Rexnord's recent stock performance has lagged behind the S&P 500, with a year-to-date return of -6.90% compared to the index's 12.22%. This underperformance over the short term may indicate a cautious outlook despite its fair valuation.