Is The Toro Co. overvalued or undervalued?

As of 18 December 2024, The Toro Co. has moved from a valuation grade of very expensive to expensive. The company is currently considered overvalued. Key ratios include a P/E ratio of 21, an EV to EBITDA ratio of 14.54, and a Price to Book Value of 5.63. In comparison, CNH Industrial NV, also classified as expensive, has a P/E ratio of 15.72, while BWX Technologies, Inc., rated as fair, shows a significantly higher P/E ratio of 67.35.
The Toro Co.'s recent stock performance has been underwhelming, with a year-to-date return of -12.21%, significantly lagging behind the S&P 500's return of 2.44%. This trend further supports the assessment of the company's overvaluation in the current market environment.