Is Interface, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Interface, Inc. has moved from very attractive to expensive, indicating a shift in perception regarding its market value. The company appears to be overvalued based on its current metrics, particularly with a P/E ratio of 14, which is higher than the peer average of 17.50, and an EV to EBITDA ratio of 7.99 compared to the peer average of 9.72. Additionally, the PEG ratio stands at 0.37, suggesting that the stock may not be justified at its current price given its growth prospects.
In comparison to its peers, Masonite International Corp. has a lower P/E ratio of 13.28, while Tecnoglass, Inc. shows a more attractive valuation with a PEG ratio of 0.77. Despite the overvaluation, Interface, Inc. has demonstrated strong performance, with a 1-year return of 36.55% compared to the S&P 500's 14.08%, and an impressive 3-year return of 160.90% against the S&P 500's 81.19%. This performance highlights the company's potential, but the current valuation suggests caution for prospective investors.