Is Interface, Inc. overvalued or undervalued?

As of 7 May 2025, the valuation grade for Interface, Inc. has moved from fair to expensive, indicating a shift in perception regarding its market value. The company is currently considered overvalued. Key ratios include a P/E ratio of 14, an EV to EBITDA of 7.99, and a PEG ratio of 0.37, which suggests that while the earnings growth potential is strong, the current price may not justify the valuation.
When compared to peers, Interface, Inc. has a P/E ratio that is significantly lower than Quanex Building Products Corp., which stands at 44.84, but higher than Apogee Enterprises, Inc. at 8.57. This peer comparison highlights that while Interface, Inc. is relatively better valued than some peers, it still falls into the expensive category. Additionally, the company's recent stock performance has outpaced the S&P 500 over the past year, with a return of 41.45% compared to the index's 10.26%, which may further complicate the valuation narrative.