Is BlueLinx Holdings, Inc. overvalued or undervalued?

As of 29 July 2025, the valuation grade for BlueLinx Holdings, Inc. has moved from expensive to very expensive, indicating a significant shift in its market perception. The company appears to be overvalued based on its current metrics, particularly with a P/E ratio of 15, which is notably lower than its peer average of approximately 25.45. Additionally, BlueLinx has an EV to EBITDA ratio of 6.15, compared to peers like AerSale Corp. with a much higher ratio of 15.86, further emphasizing its overvaluation.
In terms of return performance, BlueLinx has underperformed against the S&P 500 across multiple periods, with a year-to-date return of -23.30% compared to the S&P's 12.22%. This trend reinforces the notion that the stock is not only overvalued but also struggling to deliver returns relative to broader market benchmarks.