Is Alamo Group, Inc. overvalued or undervalued?

As of 11 September 2025, the valuation grade for Alamo Group, Inc. has moved from expensive to fair. The company appears fairly valued based on its current metrics. Key ratios include a P/E ratio of 22, an EV to EBITDA of 11.79, and a Price to Book Value of 2.39, which align closely with its peers such as CNH Industrial NV with a P/E of 19.42 and an EV to EBITDA of 10.28.
In terms of performance, Alamo Group's stock has underperformed relative to the S&P 500 over the past week and month, with returns of -3.39% and -9.29%, respectively, while the S&P 500 returned 1.05% and 2.33% in the same periods. However, over the longer term, the company's YTD return of 9.78% is relatively close to the S&P 500's 12.22%, indicating a more favorable position in the recent past.