Is Fortune Brands Innovations, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Fortune Brands Innovations, Inc. has moved from attractive to very expensive, indicating a significant shift in its perceived value. The company is currently overvalued, as reflected by its P/E ratio of 18, which is lower than the peer average of 22.87, and a PEG ratio of 3.46, suggesting that growth expectations may not justify the current price. Additionally, the EV to EBITDA ratio stands at 11.94, which is also higher than many peers, indicating that the company may be trading at a premium compared to its earnings potential.
In comparison to its peers, A. O. Smith Corp. has a P/E ratio of 26.10 and an EV to EBITDA of 17.71, while Simpson Manufacturing Co., Inc. has a P/E of 26.38 and an EV to EBITDA of 15.61, both of which highlight the elevated valuation of Fortune Brands. Furthermore, the company's stock has underperformed significantly against the S&P 500, with a one-year return of -43.63% compared to the index's 14.08%, reinforcing the notion that the stock may be overvalued in the current market environment.