Is Snap-On, Inc. overvalued or undervalued?

As of 11 April 2025, Snap-On, Inc. has moved from an attractive to a fair valuation grade. The company is currently fairly valued, with a P/E ratio of 20, a Price to Book Value of 3.85, and an EV to EBITDA of 14.95. In comparison, peer Stanley Black & Decker, Inc. has a lower P/E ratio of 17.62 and an EV to EBITDA of 9.16, indicating that Snap-On is trading at a premium relative to its peer.
The company's ROCE stands at a strong 24.62% and ROE at 18.79%, which reflect solid operational efficiency. However, the elevated PEG ratio of 20.47 suggests that growth expectations may be high relative to earnings. Recent stock performance shows Snap-On underperforming the S&P 500 on a year-to-date basis, with a decline of 9.18% compared to a 2.44% increase in the index, reinforcing the notion that the stock may be fairly valued in the current market context.