Is Astec Industries, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Astec Industries, Inc. has moved from attractive to fair. The company appears to be fairly valued based on its current metrics, with a P/E ratio of 12, a Price to Book Value of 1.40, and an EV to EBITDA ratio of 7.28. In comparison to peers, Astec Industries is considered expensive with a P/E ratio of 14.25, while The Toro Co. has a significantly higher P/E of 23.94, and Federal Signal Corp. stands at 37.75.
Despite the recent downgrade in valuation, Astec Industries has shown strong performance with a year-to-date return of 37.47%, significantly outperforming the S&P 500's return of 13.30% over the same period. However, over the longer term, the company's 5-year return of -19.93% lags behind the S&P 500's impressive 91.29%, indicating potential challenges ahead.