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 to be undervalued, supported by its P/E ratio of 28, which is lower than the peer average of 29.71, and an EV to EBITDA ratio of 19.99, also below the peer average of 20.85. Additionally, Veralto's ROE stands at a robust 37.97%, highlighting strong profitability relative to equity.
In comparison to its peers, Veralto Corp. shows a competitive edge with a PEG ratio of 3.17, suggesting that while growth is priced in, it remains reasonable compared to the industry. The stock 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 context.