Is The Timken Co. overvalued or undervalued?

As of 7 July 2025, the valuation grade for The Timken Co. has moved from expensive to fair. Based on the current metrics, the company appears fairly valued. Key valuation ratios include a P/E ratio of 13, an EV to EBITDA of 8.54, and a Price to Book Value of 1.75. In comparison to peers, The Timken Co. has a lower P/E ratio than Woodward, Inc. at 42.20 and Graco, Inc. at 29.51, indicating a more attractive valuation relative to these companies.
While The Timken Co. has shown a year-to-date return of 10.82%, it lags behind the S&P 500's return of 12.22% for the same period, and its long-term performance over 10 years is significantly lower than the S&P 500's 231.64%. This suggests that while the company is fairly valued, it may face challenges in outperforming the broader market in the long run.