Is Acuity Brands, Inc. overvalued or undervalued?

As of 3 April 2025, Acuity Brands, Inc. has moved from an attractive to a fair valuation grade. The company appears to be fairly valued at this time. Key ratios include a P/E ratio of 31, an EV to EBITDA of 21.54, and a PEG ratio of 3.95, indicating that while the company has strong earnings, its growth expectations may be priced in at a premium.
In comparison to its peers, Hubbell, Inc. is rated very attractive with a P/E of 25.57, while Generac Holdings, Inc. is rated attractive with a P/E of 21.76. This suggests that Acuity Brands is trading at a higher valuation relative to its peers, which may indicate limited upside potential. Notably, Acuity Brands has outperformed the S&P 500 over the past year with a return of 17.64% compared to the index's 10.26%, reinforcing the notion that while the stock is fairly valued, it has shown resilience in the market.