Is Core & Main, Inc. overvalued or undervalued?

As of 7 August 2024, Core & Main, Inc. has moved from a fair to an expensive valuation grade. The company is currently overvalued, with a P/E ratio of 27, which is significantly higher than the industry average P/E of approximately 24.6. Additionally, the EV to EBITDA ratio stands at 15.38, while its EV to Capital Employed ratio is 3.51, indicating a premium valuation compared to its peers.
In comparison to its peers, Genuine Parts Co. has a P/E of 16.70 and an EV to EBITDA of 11.31, while WESCO International, Inc. is more attractively valued with a P/E of 15.35 and an EV to EBITDA of 11.04. Core & Main's recent stock performance has outpaced the S&P 500, with a year-to-date return of 14.59% compared to the S&P 500's 2.44%, but this does not mitigate the fact that the stock appears overvalued based on key financial ratios.