Is Rockwell Automation, Inc. overvalued or undervalued?

As of 10 October 2025, the valuation grade for Rockwell Automation, Inc. has moved from fair to expensive, indicating that the stock is currently overvalued. The company exhibits a P/E ratio of 54, a Price to Book Value of 16.80, and an EV to EBITDA of 36.46, which are significantly higher than many of its peers. For instance, Fortive Corp. has a P/E of 19.50 and an EV to EBITDA of 11.47, suggesting that Rockwell Automation's valuation is not justified compared to its industry counterparts.
In terms of performance, Rockwell Automation has shown a year-to-date return of 16.78%, which outpaces the S&P 500's return of 11.41% for the same period. However, over the longer term, its 3-year and 5-year returns of 48.12% and 36.63% respectively lag behind the S&P 500's returns of 81.39% and 88.45%. This trend further supports the conclusion that the stock is overvalued relative to both its historical performance and its peers.