Is Veralto Corp. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Veralto Corp. has moved from expensive to attractive, indicating a shift towards a more favorable assessment of the company's worth. Based on the current metrics, Veralto Corp. appears to be undervalued. The company has a P/E ratio of 28, a Price to Book Value of 10.80, and an EV to EBITDA of 19.99, which suggests that it is trading at a reasonable valuation compared to its earnings potential.
In comparison to its peers, Veralto Corp. has a slightly lower P/E ratio than the industry average of 29.707, while its EV to EBITDA ratio is also competitive at 19.99 compared to the peer average of 20.8457. The company's strong ROCE of 33.50% and ROE of 37.97% further reinforce its attractiveness as an investment. However, recent stock performance shows that Veralto Corp. has underperformed the S&P 500 over the past year, with a return of -9.09% compared to the S&P 500's 14.08%.