At Wednesday's closing price of $44.34, Dover ( DOV) shares are down more than 10% after the company delivered better-than-expected third-quarter results Oct. 24.

At current levels, the stock is valued at just 12.3 times expected 2008 earnings of $3.62 a share. This is a 33% discount to the company's historical average valuation, and a 12% discount to the benchmark S&P 500.

Given all these positives, should you buy shares in Dover, or will the stock continue to lag the overall market?

Dover is a conglomerate of more than 40 companies aligned across four divisions. The company's businesses address supply end markets, including technology, energy and machinery. Dover makes everything from printers and circuit boards to aerospace parts, truck winches and drill bits for oil and natural gas exploration.

The industrial manufacturer earned 88 cents a share in the most recent quarter, which was a penny ahead of the consensus analyst estimate. Revenue also grew 15% from the previous year to $1.84 billion, which also came in $10 million higher than expected.

Dover has made a dozen acquisitions over the past year, but organic revenue still grew 3% year over year last quarter, including an impressive 6% in its nontechnology divisions. The company is also a beneficiary of the weaker dollar, generating more than 40% of its revenue outside of the U.S.

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