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. The company appears fairly valued based on its current metrics, with a P/E ratio of 33, a Price to Book Value of 11.44, and an EV to EBITDA ratio of 24.14. In comparison to peers, Advanced Drainage Systems, Inc. has a P/E of 27.44, while Brady Corp. shows a lower P/E of 21.28, indicating that Armstrong's valuation is competitive within its industry.
In terms of recent performance, Armstrong World Industries has outperformed the S&P 500, with a year-to-date return of 40.96% compared to the S&P 500's 13.30%. This strong performance reinforces the notion that the stock is fairly valued in light of its growth potential and returns relative to the broader market.