Is Advanced Drainage Systems, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Advanced Drainage Systems, Inc. moved from very expensive to fair. The company appears to be fairly valued based on its current metrics. Key ratios include a P/E ratio of 21, an EV to EBITDA of 12.08, and a Price to Book Value of 5.73.
In comparison to its peers, Advanced Drainage Systems, Inc. has a lower P/E ratio than Armstrong World Industries, Inc. at 38.75, but a higher EV to EBITDA than Brady Corp. at 14.28. The company's return performance shows a year-to-date gain of 21.89%, significantly outperforming the S&P 500's 13.30% during the same period, although it has underperformed over the one-year and three-year horizons. Overall, the valuation metrics suggest that the company is fairly positioned in the market.