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, indicating a slight improvement in its valuation outlook. However, the company remains overvalued based on its current metrics. The P/E ratio stands at 20, while its EV to EBITDA ratio is 11.31, and the Price to Book Value is 7.79, all suggesting that the stock is priced higher than its fundamental value compared to peers.
In comparison to its peers, Installed Building Products, Inc. has a P/E ratio of 34.33, which is significantly higher than TopBuild Corp.'s fair valuation P/E of 24.98 and MasTec, Inc.'s expensive P/E of 57.22. The company's strong ROE of 38.04% and ROCE of 29.20% indicate efficient use of capital, but these figures do not justify the high valuation ratios. Notably, the stock has outperformed the S&P 500 with a year-to-date return of 46.65% compared to the index's 13.30%, but this strong performance does not mitigate the overvaluation concerns.