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, indicating a more favorable assessment of its stock price. The company appears to be undervalued 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, A. O. Smith Corp. has a P/E of 26.10, while Simpson Manufacturing Co., Inc. shows a P/E of 26.38, highlighting that American Woodmark is trading at significantly lower valuation multiples.
Despite the improved valuation outlook, American Woodmark has faced substantial declines in stock performance, with a year-to-date return of -30.08%, contrasting sharply with the S&P 500's gain of 14.40% over the same period. This underperformance over the past year, along with a 10-year return of -38.89% compared to the S&P 500's 220.54%, suggests that while the stock may be fairly valued now, it has struggled significantly in the market.