Is Astec Industries, Inc. overvalued or undervalued?

As of 28 November 2025, the valuation grade for Astec Industries, Inc. moved from fair to attractive, indicating a positive shift in its perceived value. The company appears undervalued, supported by a P/E ratio of 12, a PEG ratio of 0.27, and an EV to EBITDA ratio of 7.28, all of which suggest that the stock is trading at a discount relative to its earnings growth potential and cash flow generation capabilities.
In comparison to its peers, Astec Industries has a lower P/E ratio than The Toro Co. at 23.94 and Federal Signal Corp. at 37.75, which are both considered expensive. Additionally, Astec's EV to EBITDA ratio of 7.28 is more favorable than the industry average, reinforcing its attractiveness. Notably, while Astec's YTD return of 31.73% outperformed the S&P 500's 16.45%, its longer-term performance has lagged, with a 5Y return of -24.50% compared to the S&P 500's 88.25%.