Is Acuity Brands, Inc. overvalued or undervalued?

As of 8 January 2025, the valuation grade for Acuity Brands, Inc. has moved from attractive to fair, indicating a shift in its perceived value. The company appears to be fairly valued at this time, with a P/E ratio of 31, a Price to Book Value of 5.36, and an EV to EBITDA of 21.54. In comparison to peers, Generac Holdings, Inc. has a lower P/E of 30.37, while Lumentum Holdings, Inc. is significantly more expensive with a P/E of 172.90.
Acuity Brands has demonstrated strong performance, with a year-to-date return of 17.93%, outpacing the S&P 500's return of 12.22% during the same period. This suggests that while the stock is fairly valued, it has been performing well relative to the broader market.