Is American Woodmark Corp. overvalued or undervalued?

As of 17 October 2025, the valuation grade for American Woodmark Corp. has moved from attractive to expensive, indicating a shift towards overvaluation. The company appears to be overvalued based on its P/E ratio of 8, which is lower than the peer average of 11.73, and its EV to EBITDA ratio of 5.83, which is also below the industry average. Additionally, the Price to Book Value stands at 0.88, suggesting that the market is valuing the company at a discount relative to its book value.
In comparison to its peers, A. O. Smith Corp. has a P/E ratio of 26.10, while Masonite International Corp. has a P/E of 13.28, both indicating that American Woodmark Corp. is trading at a lower valuation multiple despite its recent performance. The company's stock has underperformed significantly against the S&P 500, with a year-to-date return of -18.92% compared to the index's 13.30%, reinforcing the notion that it may be overvalued at its current price of 64.48.