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 assessed as overvalued, with a PE ratio of 42.30, an EV to EBITDA of 34.26, and a PEG ratio of 0.53. These ratios suggest that the stock is trading at a premium compared to its earnings growth potential.
In comparison to its peers, Smiths & Founder stands out with a higher PE ratio than Bharat Forge, which is at 59.95, and Sona BLW Precision at 49.19, both of which are also categorized as very expensive. Notably, CIE Automotive, which is rated attractive, has a significantly lower PE ratio of 20.08, highlighting the disparity in valuation within the industry. Additionally, while Smiths & Founder has experienced a strong short-term stock return of 11.02% over the past week, its year-to-date performance shows a decline of 25.79%, further reinforcing the notion of overvaluation in the context of broader market trends.