Is Woodward, Inc. overvalued or undervalued?

As of 3 October 2025, the valuation grade for Woodward, Inc. has moved from expensive to very expensive, indicating a significant increase in perceived overvaluation. The company appears to be overvalued based on its high P/E ratio of 42, a Price to Book Value of 6.96, and an EV to EBITDA of 30.85, all of which are considerably above industry norms. In comparison, peers such as Graco, Inc. and ITT, Inc. have P/E ratios of 29.51 and 26.26, respectively, highlighting Woodward's premium valuation.
Despite its strong performance, with a year-to-date return of 54.86% compared to the S&P 500's 14.18%, the company's high valuation metrics suggest that it may not be a sustainable investment at current levels. The elevated PEG ratio of 3.42 further reinforces the notion that Woodward, Inc. is overvalued in the current market environment.