Is Thermon Group Holdings, Inc. overvalued or undervalued?

As of 23 May 2025, the valuation grade for Thermon Group Holdings, Inc. has moved from fair to attractive, indicating a positive shift in its investment appeal. The company is currently considered undervalued, with a P/E ratio of 17, which is lower than its peer HollySys Automation Technologies Ltd. at 21.82. Additionally, Thermon’s EV to EBITDA stands at 10.00, suggesting it is favorably positioned compared to the industry average.
In terms of performance metrics, Thermon boasts a ROCE of 13.36% and a ROE of 10.66%, highlighting its efficient use of capital and shareholder equity. Compared to its peers, Thermon shows a stronger valuation profile, particularly against GrafTech International Ltd., which is categorized as risky. While Thermon's stock has underperformed the S&P 500 over the past year, its solid ratios and improved valuation grade suggest it may offer a compelling investment opportunity moving forward.