Is CSW Industrials, Inc. overvalued or undervalued?

As of 28 November 2025, the valuation grade for CSW Industrials, Inc. has moved from fair to expensive, indicating that the stock is overvalued. The company exhibits a P/E ratio of 38, a Price to Book Value of 4.92, and an EV to EBITDA of 22.36, which are significantly higher than its peers, such as Axalta Coating Systems Ltd. with a P/E of 19.81 and H.B. Fuller Co. at 19.57, suggesting that CSW Industrials is trading at a premium compared to the industry.
Additionally, while CSW Industrials has shown strong returns over the long term, with a 3-year return of 130.11% compared to the S&P 500's 72.78%, its year-to-date performance of -22.94% contrasts sharply with the S&P 500's 16.45% gain, reinforcing the notion that the stock may be overvalued in the current market environment.