Is BlueLinx Holdings, Inc. overvalued or undervalued?

As of 7 November 2025, BlueLinx Holdings, Inc. has moved from a fair to very expensive valuation grade, indicating a significant shift in its perceived value. The company appears overvalued, particularly when considering its P/E ratio of 15 compared to a peer average P/E of approximately 25.45, and an EV to EBITDA ratio of 6.15, which is notably lower than the peer average of 6.35. Additionally, the Price to Book Value stands at 0.85, suggesting that the stock may not be justified at its current price level.
In terms of peer comparison, CrossAmerica Partners LP has a P/E of 8.77, while AerSale Corp. boasts a much higher P/E of 63.13, highlighting the disparity in valuation within the sector. Furthermore, BlueLinx's recent stock performance has been disappointing, with a year-to-date return of -40.59% compared to the S&P 500's positive return of 14.40%, reinforcing the notion that the stock is overvalued given its underperformance relative to the broader market.