Is Installed Building Products, Inc. overvalued or undervalued?

As of 12 September 2025, the valuation grade for Installed Building Products, Inc. has moved from expensive to very expensive, indicating a significant shift in its perceived value. The company appears to be overvalued based on its current metrics, including a P/E ratio of 20, a Price to Book Value of 7.79, and an EV to EBITDA ratio of 11.31. In comparison, peers such as MasTec, Inc. and TopBuild Corp. have P/E ratios of 57.22 and 24.98, respectively, highlighting that Installed Building Products, Inc. is trading at a premium relative to some of its competitors.
Despite a strong return of 50.48% year-to-date, which outpaces the S&P 500's 12.22%, the company's recent performance has not been consistent, with a 1-year return of only 11.62% compared to the S&P 500's 17.14%. This inconsistency, combined with its elevated valuation ratios, reinforces the conclusion that Installed Building Products, Inc. is currently overvalued.