Is DXP Enterprises, Inc. overvalued or undervalued?

As of 6 August 2025, the valuation grade for DXP Enterprises, Inc. has moved from attractive to very attractive, indicating a strong improvement in its valuation outlook. The company appears to be undervalued, supported by a P/E ratio of 17, a PEG ratio of 0.57, and an EV to EBITDA ratio of 9.86, which are favorable compared to its peers. For instance, Distribution Solutions Group, Inc. has a significantly higher P/E ratio of 72.86, while MRC Global, Inc. is considered very expensive with a P/E of 34.25.
In terms of performance, DXP Enterprises has delivered impressive returns, with a 1-year return of 127.37% compared to the S&P 500's 17.14%, and a remarkable 5-year return of 567.97% versus the S&P 500's 96.61%. This strong performance reinforces the notion that the stock is undervalued relative to its growth potential and market performance.