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 peers, Brady Corp. has a P/E of 21.28, while Armstrong World Industries, Inc. has a significantly higher P/E of 38.75. The company's recent stock performance shows a year-to-date return of 21.89%, outperforming the S&P 500's return of 13.30% in the same period, indicating a positive market sentiment towards the stock.