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/EBITDA of 17.32, and a PEG ratio of 0.0, indicating that while the P/E is relatively high, the absence of growth expectations (as suggested by the PEG ratio) may balance the valuation.
In comparison to peers, Ferguson's P/E ratio is higher than the industry average, which suggests it may be priced at a premium relative to its competitors. For instance, if we consider similar companies in the trading and distribution sector, Ferguson's valuation stands out, particularly with its EV/EBITDA ratio of 17.32. Over the past year, Ferguson has outperformed the S&P 500, returning 15.52% compared to the index's 14.08%, which reinforces the notion that the stock is performing well in the market.