Is Ferguson Enterprises, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Ferguson Enterprises, Inc. moved from very expensive to fair. Based on the current metrics, the company appears to be 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, indicating that the stock may not be overvalued relative to its earnings growth potential.
In comparison to peers, Ferguson's P/E ratio is higher than the industry average, which suggests that while it is fairly valued, it may be on the higher end of the spectrum. For instance, another peer in the trading and distributors sector has a significantly lower EV to EBITDA ratio, indicating a more attractive valuation. Over the past year, Ferguson's stock has returned 15.52%, slightly underperforming the S&P 500's 14.08%, yet it has outperformed the index significantly over the longer term, particularly in the 3-year and 5-year periods.