Is Interface, Inc. overvalued or undervalued?

As of 7 July 2025, the valuation grade for Interface, Inc. has moved from very expensive to expensive, indicating a slight improvement in perceived value. Based on the current metrics, the company appears to be overvalued, with a P/E ratio of 14, a Price to Book Value of 2.30, and an EV to EBITDA of 7.99. In comparison to peers, Interface, Inc. has a higher P/E ratio than Masonite International Corp. at 13.28 and a lower EV to EBITDA than SPX Technologies, Inc. at 25.04, suggesting that while it is relatively expensive, it is not the highest in its peer group.
The stock has performed exceptionally well, with a 1-year return of 60.04% compared to the S&P 500's 17.14%, and a remarkable 5-year return of 330.55% against the S&P 500's 96.61%. This strong performance may reflect investor optimism, but the current valuation ratios indicate that Interface, Inc. is overvalued relative to its peers and the broader market.