Is Rockwell Automation, Inc. overvalued or undervalued?

As of 7 May 2024, the valuation grade for Rockwell Automation, Inc. has moved from fair to expensive, indicating a shift towards overvaluation. The company appears overvalued based on several key metrics, including a P/E ratio of 54, a Price to Book Value of 16.80, and an EV to EBITDA of 36.46. In comparison to peers, Keysight Technologies, Inc. also shows an expensive valuation with a P/E of 59.54, while Fortive Corp. is fairly valued with a P/E of 19.50.
Despite Rockwell's strong performance, with a year-to-date return of 21.96% compared to the S&P 500's 12.22%, its long-term returns of 59.19% over five years lag significantly behind the S&P 500's 96.61%. This suggests that while the company has delivered solid short-term results, its current valuation may not be justified given the performance of the broader market.