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, with a P/E ratio of 33, which is higher than its peer Graco, Inc. at 29.51, and an EV to EBITDA ratio of 11.97, compared to Graco's 20.31. Additionally, the PEG ratio stands at a notably low 0.14, indicating potential overvaluation relative to its growth prospects.
In comparison to its peers, Regal Rexnord Corp.'s valuation ratios suggest it is less favorable, particularly when looking at the EV to Sales ratio of 2.42, which is higher than the industry average. The company's recent stock performance has been underwhelming, with a year-to-date return of -9.47% compared to the S&P 500's 13.30%, and a one-year return of -20.45% against the S&P 500's 14.08%. This underperformance reinforces the notion that Regal Rexnord Corp. may be overvalued in the current market environment.