Is Builders FirstSource, Inc. overvalued or undervalued?

As of 24 October 2025, Builders FirstSource, Inc. has moved from fair to expensive in its valuation grade. The company is currently overvalued, with a P/E ratio of 13, which is significantly lower than its peer Beacon Roofing Supply, Inc. at 20.51. Additionally, Builders FirstSource has an EV to EBITDA of 8.52, also trailing behind its peer's valuation metrics.
In comparison to the broader market, Builders FirstSource has underperformed the S&P 500, with a year-to-date return of -13.20% versus the index's 15.47%. This trend continues over one year, where the stock has declined by 31.71% while the S&P 500 gained 16.90%. Overall, the valuation ratios and performance against peers and the market suggest that Builders FirstSource is currently overvalued.