Is American Woodmark Corp. overvalued or undervalued?

As of 7 November 2025, the valuation grade for American Woodmark Corp. has moved from expensive to fair. Based on the current metrics, the company appears to be undervalued. The P/E ratio stands at 8, significantly lower than the peer average of approximately 11.73, while the EV to EBITDA ratio is 5.83, indicating a favorable valuation compared to peers like A. O. Smith Corp., which has an EV to EBITDA of 17.71, and Simpson Manufacturing Co., Inc., at 15.61.
Despite the favorable valuation ratios, American Woodmark Corp. has underperformed in recent periods, with a year-to-date return of -30.08% compared to the S&P 500's 14.40%. This stark contrast reinforces the notion that the stock may be undervalued relative to its performance metrics and peer comparisons.