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. Based on the current metrics, the company appears to be overvalued. The P/E ratio stands at 12, which is lower than its peer average of approximately 14.25, while the EV to EBITDA ratio is 7.28, also below the peer average of 8.30. Additionally, the PEG ratio is notably low at 0.27, suggesting that the stock may not be priced appropriately relative to its growth potential.
In comparison to its peers, Astec Industries, Inc. is less expensive than companies like The Toro Co. with a P/E of 23.94 and Federal Signal Corp. at 37.75, both categorized as very expensive. However, despite its relatively lower valuation ratios, the company has underperformed significantly over longer periods, with a 3-year return of 34.98% compared to the S&P 500's 81.19%. This performance, alongside the current valuation metrics, reinforces the conclusion that Astec Industries, Inc. is overvalued.