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 financial 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 are significantly higher than peers like TopBuild Corp. with a P/E of 24.98 and an EV to EBITDA of 15.94, indicating a premium valuation.
In comparison to the S&P 500, Installed Building Products has delivered a strong year-to-date return of 46.65%, significantly outperforming the index's 13.30%. However, over a longer horizon, such as the 10-year return, the company has underperformed the S&P 500, which raises concerns about its sustainability at current valuation levels.