Is Astec Industries, Inc. overvalued or undervalued?

As of 7 November 2025, the valuation grade for Astec Industries, Inc. has moved from attractive to fair. Based on the current metrics, the company appears to be fairly valued. The P/E ratio stands at 12, which is lower than the 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, indicating potential undervaluation relative to growth expectations.
In comparison to peers, The Toro Co. has a P/E ratio of 23.94, making it expensive, while Alamo Group, Inc. is fairly valued with a P/E of 21.81. Despite recent stock performance showing a year-to-date return of 33.90% compared to the S&P 500's 14.40%, Astec's longer-term returns have lagged, particularly over the 3-year and 5-year periods. This suggests that while the stock has performed well recently, its overall valuation remains cautious.