Is Armstrong World Industries, Inc. overvalued or undervalued?

As of 29 July 2025, Armstrong World Industries, Inc. has moved from expensive to fair in valuation. The company is currently fairly valued, with a P/E ratio of 33, a Price to Book Value of 11.44, and an EV to EBITDA of 24.14. In comparison to peers, Advanced Drainage Systems, Inc. has a P/E of 27.44, while Brady Corp. shows a P/E of 21.28, indicating that Armstrong's valuation is in line with its industry but on the higher side relative to some competitors.
Despite a recent one-week decline of 0.86% compared to a 1.05% gain in the S&P 500, the company has shown strong performance year-to-date with a return of 39.69% versus the S&P 500's 12.22%. Over the past year, Armstrong's return of 53.25% significantly outpaces the S&P 500's 17.14%, reinforcing the notion that the stock is fairly valued given its strong growth trajectory.