Is Installed Building Products, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Installed Building Products, Inc. has moved from very expensive to expensive. The company appears to be overvalued based on its current metrics. Key ratios include a P/E ratio of 20, a Price to Book Value of 7.79, and an EV to EBITDA of 11.31, which suggest that the stock is trading at a premium compared to its earnings and book value.
In comparison to its peers, Installed Building Products, Inc. has a significantly higher P/E ratio than TopBuild Corp., which stands at 24.98, indicating a more favorable valuation for the latter. Additionally, MasTec, Inc. has a P/E ratio of 57.22, but it is also considered expensive, highlighting that the industry is generally trading at elevated valuations. Notably, while Installed Building Products has outperformed the S&P 500 year-to-date with a return of 46.65% compared to 13.30%, its longer-term performance over 10 years shows a decline relative to the benchmark, which may reinforce concerns about its current valuation.