Is Ferguson Enterprises, Inc. overvalued or undervalued?

As of 12 September 2025, the valuation grade for Ferguson Enterprises, Inc. has moved from expensive to fair, indicating a more favorable assessment of its market position. Based on the current metrics, the company appears fairly valued. Key ratios include a P/E ratio of 28.14, an EV to EBITDA of 17.32, and a PEG ratio of 0.0, which suggests that the stock may be priced appropriately relative to its earnings growth potential.
In comparison to peers, Ferguson's P/E ratio is higher than the industry average, indicating a premium valuation, while its EV to EBITDA is competitive. Notable peers include a company with a P/E ratio of 25.00 and another with an EV to EBITDA of 15.00, suggesting that Ferguson is on par with or slightly above industry standards. Over the past year, Ferguson has returned 11.52%, underperforming the S&P 500's 17.14%, which may suggest that while the stock is fairly valued, it has not fully capitalized on market gains.