Is Resideo Technologies, Inc. overvalued or undervalued?

As of 5 August 2025, the valuation grade for Resideo Technologies, Inc. has moved from very expensive to risky. Based on the available metrics, the company appears to be undervalued. The P/E ratio stands at 14, which is significantly lower than the peer average of 24.70 for similar companies, indicating potential undervaluation. Additionally, the EV to EBITDA ratio is 6.22, while peers like TD SYNNEX Corp. and Arrow Electronics, Inc. have higher ratios of 9.58 and 16.65, respectively, further supporting the undervaluation thesis.
Resideo's return performance has been impressive, with a 1Y return of 116.82%, significantly outpacing the S&P 500's 17.14% return over the same period. This strong performance, coupled with the favorable valuation ratios, suggests that Resideo Technologies, Inc. may present a compelling investment opportunity in the current market environment.