Is Alamo Group, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Alamo Group, Inc. has moved from attractive to fair, indicating a shift in its perceived value. The company appears to be fairly valued at this time. Key valuation ratios include a P/E ratio of 22, an EV to EBITDA of 11.79, and a Price to Book Value of 2.39. In comparison, CNH Industrial NV has a P/E of 19.42, while BorgWarner, Inc. is considered very expensive with a P/E of 11.57.
Despite the recent valuation adjustment, Alamo Group's stock has underperformed relative to the S&P 500, with a year-to-date return of -2.73% compared to the S&P 500's 13.30%. This underperformance, along with the fair valuation grade, suggests that while the stock is not overvalued, it may not present a compelling investment opportunity at its current price.