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. The company appears undervalued based on its current metrics. Key valuation ratios include a P/E ratio of 28, an EV to EBITDA of 19.99, and a PEG ratio of 3.17, which suggest that while the company has strong earnings growth potential, it is trading at a premium compared to its peers.
In comparison to its peer, which has a P/E of 29.707 and an EV to EBITDA of 20.8457, Veralto Corp. presents a more attractive valuation. Additionally, its ROE of 37.97% and ROCE of 33.50% indicate strong profitability relative to its equity and capital employed. However, the recent stock performance shows that Veralto Corp. has underperformed against the S&P 500 over the past year, with a return of -9.09% compared to the index's 14.08%, reinforcing the notion that the stock may be undervalued in the current market.