Based on the provided data, I'll analyze whether CW (Curtiss-Wright Corp) is overvalued.
Valuation Analysis
The company's PE ratio has increased significantly from 26.34 in Q1 2024 to 31.07 in Q3 2024, showing an upward trend in valuation. Similarly, EV/EBITDA expanded from 16.92 to 20.20, indicating higher market expectations.
Recent Price Movement
Analyst Consensus
Recent analyst actions show mixed signals. While Deutsche Bank initiated coverage with a $452 target and Strong Buy rating in December 2024, Stifel downgraded to Hold with a $370 target in November 2024. Most recently, Citigroup initiated coverage with a $410 target in January 2025.
Conclusion in 5 Sentences
CW appears moderately overvalued based on its expanding valuation multiples and recent price appreciation. The stock's PE ratio of 31x is significantly higher than its historical average, suggesting premium pricing. While the company benefits from increased global military spending and nuclear power opportunities, current valuations appear to have priced in much of this growth potential. The mixed analyst ratings, with recent downgrades citing valuation concerns, further support this assessment. The stock's current trading level above $380 suggests limited upside potential relative to even bullish analyst targets around $410-$452.