Is GMS, Inc. overvalued or undervalued?

As of 7 July 2025, the valuation grade for GMS, Inc. has moved from expensive to very expensive, indicating a significant increase in perceived overvaluation. The company is currently considered overvalued based on its metrics, with a P/E ratio of 15, a Price to Book Value of 2.15, and an EV to EBITDA ratio of 8.35. In comparison to peers, GMS, Inc. has a higher P/E ratio than WESCO International, Inc. at 20.94 and a lower EV to EBITDA than Pool Corp. at 21.57, reinforcing its expensive valuation status.
Additionally, GMS, Inc. has demonstrated strong returns, with a 1Y return of 31.28% compared to the S&P 500's 17.14%, and an impressive 5Y return of 341.25% against the S&P 500's 96.61%. This performance highlights the market's optimism despite the company's current overvaluation.