Is SPX Technologies, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for SPX Technologies, Inc. has moved from attractive to very expensive, indicating a shift towards overvaluation. The company appears overvalued, as reflected by its P/E ratio of 39, which is significantly higher than peers like A. O. Smith Corp. at 26.10 and Simpson Manufacturing Co., Inc. at 26.38. Additionally, the EV to EBITDA ratio stands at 21.86, compared to the industry average of 25.04 for its closest peer, suggesting a premium valuation.
The PEG ratio of 1.55 further supports the notion of overvaluation, as it indicates that the stock is priced high relative to its earnings growth. While SPX Technologies has delivered impressive returns over the long term, with a 5-year return of 269.71% compared to the S&P 500's 91.29%, recent performance has lagged, with a 1-year return of 7.17% against the S&P 500's 14.08%. This divergence in returns reinforces the view that the stock may be overvalued in the current market environment.