Is GMS, Inc. overvalued or undervalued?

As of 18 June 2025, the valuation grade for GMS, Inc. has moved from expensive to very expensive, indicating a significant shift in its perceived value. The company is currently overvalued based on its financial metrics. Key ratios include a P/E ratio of 15, an EV to EBITDA of 8.35, and a Price to Book Value of 2.15, which are higher than its peer UGI Corp., which has a P/E of 13.69 and an EV to EBITDA of 9.15.
In comparison to its peers, GMS, Inc. shows a less favorable valuation profile, with its P/E ratio exceeding that of UGI Corp., while also reflecting a higher Price to Book Value. The company's recent stock performance has outpaced the S&P 500, with a year-to-date return of 18.37% compared to the S&P 500's 2.44%, but this does not mitigate the overvaluation indicated by its financial ratios.