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, indicating a shift in its perceived value. The company appears to be fairly valued at this time. Key valuation ratios include a P/E ratio of 12, an EV to EBITDA of 6.34, and a Price to Book Value of 0.90, which suggest that the company is priced reasonably compared to its earnings and asset value.
In comparison to its peers, Louisiana-Pacific Corp. has a significantly higher P/E ratio of 26.87, while UFP Industries, Inc. shows a more comparable P/E of 18.30. This positions Mohawk Industries favorably within its industry, despite the recent valuation downgrade. Notably, the company's stock has underperformed against the S&P 500 over the past year, with a return of -20.00% compared to the index's 14.08%, highlighting the challenges it faces in the current market environment.