Is Stanley Black & Decker, Inc. overvalued or undervalued?

As of 16 June 2025, Stanley Black & Decker, Inc. has moved from a fair valuation to an expensive rating. The company is currently overvalued based on its financial metrics. Key ratios include a P/E ratio of 18, a Price to Book Value of 1.28, and an EV to EBITDA of 9.34. In comparison, peer Snap-On, Inc. has a P/E of 19.55 and an EV to EBITDA of 14.28, indicating that Stanley Black & Decker is priced higher relative to its earnings potential.
The company's recent performance has also been underwhelming, with a year-to-date return of -18.22%, significantly lagging behind the S&P 500's 2.44% return. This underperformance, combined with its elevated valuation metrics, suggests that investors may be paying a premium that is not justified by the company's current financial health and growth prospects.