Is Griffon Corp. overvalued or undervalued?

As of 8 May 2025, Griffon Corp. has moved from an attractive to a fair valuation grade. The company is currently fairly valued, with a P/E ratio of 21, a Price to Book Value of 24.52, and an EV to EBITDA of 13.44. In comparison to its peers, Griffon Corp. has a lower P/E than Watsco, Inc. at 32.52 and a higher EV to EBITDA than Masco Corp. at 10.54, indicating a competitive position within its industry.
Griffon Corp. shows strong financial metrics, including a remarkable ROE of 116.74% and a ROCE of 26.38%. The PEG ratio stands at 1.33, suggesting that the stock is reasonably priced relative to its growth prospects. While the stock has underperformed the S&P 500 year-to-date, it has significantly outperformed over the past three and five years, which may reflect its long-term growth potential despite its current fair valuation.