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IDEX (IEX) Posted Q3 Results, Is Its 9% Undervaluation Still Intact?

Simply Wall St · 4d ago

IDEX (IEX) just posted its third quarter 2026 results, giving investors fresh detail on how the industrial group is performing across its core fluid handling and precision technology businesses.

IDEX’s share price has climbed 30.24% year to date, and the 1 year total shareholder return of 41.61% points to strong recent momentum. The more modest 27% 3 year and 7.33% 5 year total shareholder returns suggest the latest move has been a relatively recent acceleration.

Scan how IDEX's latest earnings momentum compares with other industrials by reviewing the hand picked list of solid balance sheet and fundamentals (24 results).

The question now is straightforward. After a 30% year to date surge on rising earnings at IDEX, is most of the upside already in the rear view mirror, or does the current valuation still leave meaningful room ahead?

Most Popular Narrative: 9% Undervalued

On the most widely followed view, IDEX carries a fair value estimate of $255.93 against a last close of $233.21. This frames the recent rally as a move toward, not away from, that narrative target.

Record company backlog of more than US$1b with 28% organic order growth in Q2 2026 and multi quarter visibility in HST and parts of FMT, including future dated data center bookings that extend into 2027, provides a pipeline that can support revenue and cash flow growth beyond what is already recognised.

See why 8 investors see IDEX as 9% undervalued.

Result: Fair Value of $255.93 (UNDERVALUED)

Still, if external research on muted organic growth and returns on capital proves more accurate, or insider selling deepens, the IDEX undervaluation story could weaken.

Find out about the key risks to this IDEX narrative.

Another View: What IDEX’s P/E Is Telling You

The story changes when you swap fair value estimates for a simple P/E check. IDEX trades on 33.1x earnings, compared with a fair ratio of 22.9x, a US Machinery industry average of 24.5x and a peer group around 29.7x. That is a rich premium. Is the market paying ahead of itself?

To pressure test that higher earnings multiple against the underlying numbers, take a closer look at the full valuation breakdown, including the fair ratio detail, in the See what the numbers say about this price — find out in our valuation breakdown.

NYSE:IEX P/E Ratio as at Oct 2026
NYSE:IEX P/E Ratio as at Oct 2026

Next Steps

Confident about the IDEX story so far, or still on the fence after this earnings run and valuation debate? Act while the data is fresh and check the 3 key rewards

Looking for more investment ideas beyond IDEX?

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