Is Resideo Technologies, Inc. overvalued or undervalued?

As of 13 February 2025, the valuation grade for Resideo Technologies, Inc. has moved from expensive to very expensive. The company is currently overvalued based on its financial metrics. The P/E ratio stands at 14, which is higher than its peer Avnet, Inc. that has a P/E of 11.56. Additionally, Resideo's EV to EBITDA ratio is 6.22, while Avnet's is 8.46, indicating a relative overvaluation in terms of earnings before interest, taxes, depreciation, and amortization.
In terms of other key ratios, Resideo's Price to Book Value is 0.95, and its ROE is 6.61%, which is relatively low compared to industry standards. The company's recent stock performance shows a 1-week return of 3.22%, outperforming the S&P 500's slight decline of 0.13%, but the longer-term trends indicate underperformance relative to broader market indices. Overall, these factors suggest that Resideo Technologies, Inc. is not only very expensive but also overvalued in the current market context.