Is Vontier Corp. overvalued or undervalued?

As of 7 May 2025, Vontier Corp. has moved from a fair to a very expensive valuation grade. The company is currently deemed overvalued based on its financial metrics. Key ratios include a P/E ratio of 14, an EV to EBITDA of 10.82, and an ROE of 34.38%. In comparison, peers such as Performance Food Group Co. have a significantly higher P/E of 30.71, while Lyft, Inc. maintains a fair valuation with a P/E of 62.13.
Despite Vontier's strong ROCE of 18.42%, its valuation metrics suggest that it is trading at a premium compared to its peers, indicating a potential overvaluation. The company's recent stock performance has lagged behind the S&P 500 over the past year, with a return of -8.17% compared to the index's 10.26%. This further supports the conclusion that Vontier Corp. is currently overvalued.