Is Armstrong World Industries, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Armstrong World Industries, Inc. moved from expensive to fair, indicating a more favorable assessment of its market position. The company is currently fairly valued based on its financial metrics. Key ratios include a P/E ratio of 33, an EV to EBITDA of 24.14, and a PEG ratio of 1.87, which suggest that while the company is not undervalued, it is also not excessively priced compared to its earnings growth potential.
In comparison to its peers, Armstrong's P/E ratio of 33 is higher than Advanced Drainage Systems, Inc. at 27.44 and Brady Corp. at 21.28, indicating a premium valuation relative to these competitors. Additionally, its EV to EBITDA ratio of 24.14 is more favorable than TriMas Corp.'s very expensive ratio of 44.56. Notably, Armstrong has outperformed the S&P 500 with a year-to-date return of 40.96% compared to the index's 13.30%, reinforcing its strong market performance.