Is Regal Rexnord Corp. overvalued or undervalued?

As of 17 October 2025, Regal Rexnord Corp. has moved from a very attractive to a fair valuation grade. The company appears to be overvalued based on its current metrics. 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 that despite a low growth expectation, the stock is priced relatively high compared to its earnings potential.
In comparison to its peers, Regal Rexnord Corp. has a P/E ratio of 32.78, which is higher than Graco, Inc. at 29.51 but lower than Entegris, Inc. at 42.41. The EV to EBITDA ratio of 11.86 is also more favorable than that of Lincoln Electric Holdings, Inc. at 29.90. Despite a strong dividend yield of 33.14%, the company's recent performance has lagged behind the S&P 500, with a YTD return of -9.47% compared to the index's 13.30%. This underperformance reinforces the notion that Regal Rexnord Corp. is currently overvalued.