Is Mohawk Industries, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Mohawk Industries, Inc. has moved from attractive to fair. Based on the current metrics, the company appears to be fairly valued. The P/E ratio stands at 12, which is significantly lower than the peer average of 17.49 for companies like Louisiana-Pacific Corp. and 18.30 for UFP Industries, indicating a potential undervaluation relative to its peers. Additionally, the EV to EBITDA ratio of 6.34 further supports this assessment, as it is lower than the industry average, suggesting that the company may be undervalued in terms of its earnings potential.
In terms of performance, Mohawk Industries has shown a 1-week return of 8.35%, outperforming the S&P 500's 1.70% return, although it has lagged behind the index over longer periods, such as a 1-year return of -20.00% compared to the S&P 500's 14.08%. Overall, while the recent returns indicate some short-term strength, the longer-term performance suggests caution, reinforcing the view that the company is fairly valued in the current market context.