Is Armstrong World Industries, Inc. overvalued or undervalued?

As of 30 April 2025, the valuation grade for Armstrong World Industries, Inc. moved from very expensive to expensive. The company is currently considered overvalued. Key ratios include a P/E ratio of 33, a Price to Book Value of 11.44, and an EV to EBITDA of 24.14. In comparison, Advanced Drainage Systems, Inc. has a P/E of 20.36 and an EV to EBITDA of 11.96, while Berry Global Group, Inc. shows a P/E of 14.64 and an EV to EBITDA of 7.72, highlighting that Armstrong is priced significantly higher than its peers.
Despite the overvaluation, Armstrong has shown strong performance with a 1-year return of 36.39%, outperforming the S&P 500's return of 10.26%. This performance may be a factor in its elevated valuation, but the ratios suggest that the stock is not justified at its current price level.