Is CSW Industrials, Inc. overvalued or undervalued?

As of 14 August 2025, the valuation grade for CSW Industrials, Inc. moved from expensive to fair. The company appears fairly valued based on its current metrics. Key ratios include a P/E ratio of 38, an EV to EBITDA of 22.36, and a PEG ratio of 1.39, which indicate a reasonable valuation relative to its earnings growth potential.
In comparison to its peers, CSW Industrials has a P/E ratio of 32.31, which is higher than Axalta Coating Systems Ltd. at 19.81 and H.B. Fuller Co. at 19.57, suggesting that while it is fairly valued, it is still priced at a premium compared to some competitors. Notably, CSW Industrials has underperformed the S&P 500 year-to-date with a return of -27.50% compared to the index's 12.22%, but it has shown strong performance over the longer term with a 3-year return of 106.97% versus 70.41% for the S&P 500.