Recent news around SPX Technologies (SPXC) centers on rising HVAC demand from data center customers. The company is committing over US$100 million to expand manufacturing capacity and has launched the Marley OlympusMAX Fluid Cooler for these applications.

Recent gains in SPX Technologies’ share price appear to reflect growing interest in its data center focused HVAC expansion and planned leadership transition in Detection & Measurement. The 30-day share price return of 18.3% and 1-year total shareholder return of 57.3% suggest that momentum has been building rather than fading.

If this kind of HVAC and power infrastructure story has your attention, it could be a good moment to widen your search with 34 power grid technology and infrastructure stocks

With SPX Technologies now valued at around US$12.2b and trading near US$243, plus an intrinsic discount estimate of about 6% and a 9.6% gap to analyst targets, you have to ask whether the current valuation suggests a potential opportunity or if the market is already fully reflecting the company’s prospects.

Most Popular Narrative: 8.7% Undervalued

SPX Technologies last closed at $242.97, compared with a widely followed fair value narrative of $266.25, which frames the current data center HVAC enthusiasm in valuation terms.

Expansion in data center cooling solutions, highlighted by the new OlympusV Max launch, which addresses the rapidly growing demand for energy-efficient, large-scale data center infrastructure, positions SPX to expand its addressable market and top-line growth as hyperscale projects move into 2026, supporting both revenue and margin improvement due to product differentiation and high-engineering requirements.

Curious what growth path and margin profile sit behind that fair value for SPX Technologies? The narrative leans on double digit top line expansion, rising profitability, and a future earnings multiple that assumes investor confidence holds. The full set of assumptions joins those pieces into a single price story that could be higher or lower than what you expect.

Result: Fair Value of $266.25 (UNDERVALUED)

However, SPX Technologies still faces real pressure points, including project timing swings in Detection & Measurement and the risk that frequent acquisitions do not deliver the expected margin benefits.

Another View on SPX Technologies Valuation

The narrative around SPX Technologies focuses on a fair value close to $266.25, yet the current P/E of 47.1x stands well above both the US Machinery industry at 27.6x and an estimated fair ratio of 32.7x. That kind of gap can mean rich expectations, so how comfortable are you with paying up for this growth story?

To see how those P/E gaps stack up against peers in practical terms, and what that might mean for valuation risk, it is worth taking a closer look at the detailed multiples workup, including the fair ratio our models point to, using See what the numbers say about this price — find out in our valuation breakdown.

Next Steps

With SPX Technologies attracting optimistic attention, do you feel the current enthusiasm is justified or stretched, and are you ready to act on your own homework by weighing up the company's 3 key rewards

Looking for more investment ideas beyond SPX Technologies?

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.