Is Smiths & Founder overvalued or undervalued?

As of 24 October 2025, the valuation grade for Smiths & Founder has moved from expensive to very expensive, indicating a significant increase in perceived overvaluation. The company is currently deemed overvalued. Key ratios include a PE ratio of 42.30, an EV to EBITDA of 34.26, and a PEG ratio of 0.53, which suggest that the stock is trading at a premium compared to its earnings growth potential.
In comparison to its peers, Smiths & Founder has a notably higher PE ratio than Bharat Forge, which stands at 59.95, and Sona BLW Precision, at 49.19, both of which are also classified as very expensive. Other peers like CIE Automotive, rated as attractive, have a much lower PE of 20.08, highlighting the disparity in valuation within the industry. Despite a recent week-on-week stock return of 11.02%, the year-to-date performance shows a decline of 25.79%, further reinforcing the notion that the stock is overvalued relative to both its peers and the broader market.