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. Based on the current metrics, the company appears to be fairly valued. 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 to peers, CNH Industrial NV has a lower P/E of 19.42 and a more favorable EV to EBITDA of 10.28, indicating that Alamo Group is priced higher relative to some competitors.
In terms of stock performance, Alamo Group has underperformed against the S&P 500 across multiple periods, with a year-to-date return of -2.73% compared to the S&P 500's 13.30%. This trend reinforces the assessment of the company being fairly valued, as it struggles to keep pace with broader market returns.