Is JELD-WEN Holding, Inc. overvalued or undervalued?

As of 6 May 2024, the valuation grade for JELD-WEN Holding, Inc. has moved from fair to risky, indicating a deterioration in its investment appeal. The company appears to be overvalued, with a P/E ratio of 18, significantly higher than its peer average of approximately 10.69. Additionally, the Price to Book Value stands at 0.73, while the EV to EBITDA ratio is 7.18, both suggesting that the stock may not be justified at its current price given its financial performance.
In comparison to peers, JELD-WEN's valuation metrics are less favorable, with a notably higher P/E ratio than its closest competitor. The company's return performance has also been disappointing, with a 1-year stock return of -61.85% compared to a 17.14% return for the S&P 500, and a staggering -73.25% over the last 5 years against the index's 96.61% gain. This stark contrast reinforces the notion that JELD-WEN is currently overvalued in the market.