Is The Timken Co. overvalued or undervalued?

As of 17 October 2025, the valuation grade for The Timken Co. has moved from attractive to fair. Based on the current metrics, the company appears to be fairly valued. The P/E ratio stands at 13, while the EV to EBITDA ratio is 8.54, and the EV to Sales ratio is 1.52, indicating that the stock is reasonably priced relative to its earnings and sales.
In comparison to its peers, The Timken Co. has a P/E ratio of 14.76, which is lower than Woodward, Inc. at 42.20, but higher than Graco, Inc. at 29.51. The EV to EBITDA ratio of 9.17 for The Timken Co. is also more favorable compared to Lincoln Electric Holdings, Inc. at 29.90. Despite recent performance, where the stock has underperformed the S&P 500 over the past year with a return of -16.13% compared to 14.08%, it has shown stronger performance over the last week with a return of 3.36% against the S&P 500's 1.70%.