Is Xylem, Inc. overvalued or undervalued?

As of 29 April 2025, Xylem, Inc. has moved from a valuation grade of very expensive to expensive. The company is currently considered overvalued. Key ratios include a P/E ratio of 35, an EV to EBITDA of 20.21, and a Price to Book Value of 3.03. In comparison to its peers, GE Aerospace has a significantly higher P/E ratio of 123.69, while Trane Technologies Plc, also classified as expensive, has a P/E of 37.47.
Despite a recent stock return of -9.50% over the past year compared to the S&P 500's 10.26%, Xylem's valuation metrics suggest that it is priced above its intrinsic value, especially when compared to peers like Parker-Hannifin Corp. with a P/E of 33.82 and Johnson Controls International Plc at 24.92. Overall, these indicators reinforce the conclusion that Xylem, Inc. is overvalued in the current market context.