Is Patrick Industries, Inc. overvalued or undervalued?

As of 30 June 2025, the valuation grade for Patrick Industries, Inc. moved from expensive to very expensive, indicating a significant increase in perceived overvaluation. The company appears overvalued based on its current metrics, including a P/E ratio of 22, a Price to Book Value of 2.68, and an EV to EBITDA of 10.28. In comparison, peers such as Frontdoor, Inc. have a P/E of 17.42 and M.D.C. Holdings, Inc. has a P/E of 16.34, suggesting that Patrick Industries is trading at a premium relative to its industry counterparts.
Despite a strong year-to-date return of 29.29%, which outperformed the S&P 500's 12.22%, the overall valuation metrics indicate that the stock may not be justified at its current price level. The significant discrepancy in valuation ratios compared to peers reinforces the conclusion that Patrick Industries, Inc. is overvalued.