Is SPX Technologies, Inc. overvalued or undervalued?

As of 2 May 2024, SPX Technologies, Inc. has moved from an expensive to a very expensive valuation grade. The company is currently overvalued based on its financial ratios. The P/E ratio stands at 39, significantly higher than the industry average, while the EV to EBITDA ratio is 21.86, indicating a premium valuation compared to peers. Additionally, the PEG ratio of 1.55 suggests that growth expectations may not justify the current price.
In comparison to peers, Watsco, Inc. has a P/E of 32.52 and EV to EBITDA of 24.12, while Allegion Plc shows a P/E of 18.85 and EV to EBITDA of 14.38, both of which highlight a more reasonable valuation relative to SPX Technologies. Despite SPX's recent stock performance, which has outpaced the S&P 500 over various periods, the elevated valuation metrics indicate that the stock may not be a prudent investment at its current price of $158.00.