Is Builders FirstSource, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Builders FirstSource, Inc. has moved from attractive to fair. The company appears to be fairly valued based on its current metrics, with a P/E ratio of 13, an EV to EBITDA of 8.52, and a Price to Book Value of 2.82. In comparison, its peer Beacon Roofing Supply, Inc. has a higher P/E ratio of 20.51, indicating that Builders FirstSource may be more reasonably priced relative to its competition.
Despite recent stock performance showing a significant decline of 37.28% over the past year compared to a 14.08% gain in the S&P 500, the company has demonstrated strong long-term returns, with a 5-year return of 265.79% versus the S&P 500's 91.29%. This suggests that while the stock may be currently fairly valued, it has the potential for recovery and growth in the long run.