Is Astec Industries, Inc. overvalued or undervalued?

As of 21 November 2025, the valuation grade for Astec Industries, Inc. moved from attractive to fair. Based on the current metrics, the company appears to be fairly valued. The P/E ratio stands at 12, while the industry average is not provided; however, peer comparisons show that The Toro Co. has a significantly higher P/E of 23.94, indicating Astec's relative affordability. Additionally, the EV to EBITDA ratio is 7.28, which is lower than the peer average of 8.30 for its comparable companies.
Astec's PEG ratio of 0.27 suggests strong growth potential relative to its price, and the ROCE of 15.15% indicates effective capital utilization. In terms of recent performance, Astec Industries has underperformed the S&P 500 over the 3-year and 5-year periods, with returns of -1.51% and -24.69% respectively, compared to the S&P's 67.17% and 85.61%. This underperformance may reflect the company's current valuation status.