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

As of 12 September 2025, the valuation grade for Stanley Black & Decker, Inc. moved from expensive to very attractive, indicating a significant improvement in its valuation outlook. Based on the metrics provided, the company appears undervalued, with a P/E ratio of 18, a Price to Book Value of 1.28, and an EV to EBITDA of 9.34. In comparison, a peer such as Stanley Black & Decker, Inc. has a lower P/E of 17.884 and an EV to EBITDA of 11.4973, suggesting that the company is positioned favorably within its industry.
Despite the positive valuation metrics, the stock has underperformed against the S&P 500, with a 1-year return of -24.32% compared to the index's 17.14%. This trend continues over longer periods, with a 5-year return of -50.50% versus the S&P 500's 96.61%. Overall, the combination of attractive valuation ratios and the recent grade change supports the conclusion that Stanley Black & Decker, Inc. is currently undervalued.