Is Teledyne Technologies, Inc. overvalued or undervalued?

As of 31 October 2025, the valuation grade for Teledyne Technologies, Inc. moved from expensive to fair. The company appears fairly valued based on its metrics, with a P/E ratio of 27, an EV to EBITDA of 19.66, and a Price to Book Value of 2.39. In comparison, peers such as Northrop Grumman have a P/E of 29.71 and an EV to EBITDA of 20.53, indicating that Teledyne's valuation is competitive within the Aerospace & Defense sector.
Despite a fair valuation, Teledyne has underperformed relative to the S&P 500 in recent periods, with a 1-year return of 15.70% compared to the S&P 500's 19.89%. This trend continues over longer periods, with a 3-year return of 32.37% against the S&P 500's 76.66%, suggesting that while the stock is fairly valued, it may not be the best performer compared to broader market benchmarks.