Is Griffon Corp. overvalued or undervalued?

As of 6 August 2025, the valuation grade for Griffon Corp. has moved from fair to very expensive, indicating a significant shift in its perceived value. The company appears overvalued based on its current metrics. Key ratios include a P/E ratio of 21, a Price to Book Value of 24.52, and an EV to EBITDA of 13.44, all of which suggest that the stock is trading at a premium compared to its peers.
In comparison to its industry peers, Griffon Corp. has a lower P/E ratio than SPX Technologies, Inc., which stands at 45.73, but is higher than A. O. Smith Corp. at 26.10. The PEG ratio of 1.33 also indicates that the stock may be overvalued relative to its growth prospects. Notably, while Griffon Corp. has shown strong long-term returns, with a 5-year return of 290.77%, it has underperformed the S&P 500 over the past year, which returned 17.14% compared to Griffon's 12.83%.