Is American Woodmark Corp. overvalued or undervalued?

As of 12 September 2025, the valuation grade for American Woodmark Corp. has moved from fair to expensive. The company appears to be overvalued based on its current metrics, with a P/E ratio of 8, a Price to Book Value of 0.88, and an EV to EBITDA of 5.83. In comparison to peers, American Woodmark's P/E ratio is significantly lower than that of A. O. Smith Corp., which stands at 26.10, and it also lags behind Masonite International Corp. at 13.28, indicating a relative overvaluation.
In terms of recent performance, American Woodmark has underperformed against the S&P 500, with a year-to-date return of -14.33% compared to the index's 12.22%. Over the past year, the stock has declined by 26.39%, while the S&P 500 has gained 17.14%. This trend further supports the conclusion that American Woodmark is currently overvalued.