Is Atkore, Inc. overvalued or undervalued?

As of 5 August 2025, Atkore, Inc. has moved from an attractive to a fair valuation grade. The company appears to be overvalued based on its current metrics, with a P/E ratio of 7, which is lower than the peer average of 8.34 for similar companies like Acuity Brands, Inc. (P/E of 38.19) and Belden, Inc. (P/E of 24.33). Additionally, Atkore's EV to EBITDA ratio stands at 4.88, compared to the industry average, indicating a potential overvaluation relative to its peers.
Despite a high dividend yield of 210.27% and strong returns on capital employed (ROCE of 22.17%) and equity (ROE of 22.52%), the stock has underperformed significantly against the S&P 500, with a year-to-date return of -27.42% compared to the index's 12.22%. This underperformance, along with the valuation metrics, suggests that Atkore, Inc. is currently overvalued in the market.