Is Distribution Solutions Group, Inc. overvalued or undervalued?

As of 31 July 2025, the valuation grade for Distribution Solutions Group, Inc. has moved from attractive to very attractive. Despite this positive change, the company appears to be overvalued based on its current metrics. The P/E ratio stands at 44, significantly higher than peers like Global Partners LP at 12.28 and DNOW, Inc. at 16.68. Additionally, the EV to EBITDA ratio of 11.13 is also elevated compared to the industry average, indicating a premium valuation.
In comparison to the S&P 500, Distribution Solutions Group, Inc. has underperformed in the short and medium term, with a year-to-date return of -8.43% versus the S&P 500's 12.22%. This trend continues over the past year, where the company returned -15.35% compared to the S&P 500's 17.14%. Given the high valuation ratios and the recent underperformance relative to the benchmark, the company is considered overvalued.