Is Pool Corp. overvalued or undervalued?

As of 11 September 2025, the valuation grade for Pool Corp. has moved from expensive to very expensive, indicating a significant increase in perceived valuation. The company appears overvalued based on its current financial metrics, including a P/E ratio of 27, a Price to Book Value of 9.02, and an EV to EBITDA of 19.32. In comparison, peers such as WESCO International, Inc. have a P/E of 20.94 and Applied Industrial Technologies, Inc. shows a P/E of 33.09, highlighting that Pool Corp. is trading at a premium relative to some peers while also being classified as very expensive.
Recent stock performance shows that Pool Corp. has underperformed against the S&P 500, with a year-to-date return of -4.64% compared to the S&P 500's 12.22%. Over the past year, the company has declined by 11.87%, while the S&P 500 has gained 17.14%, reinforcing the notion that Pool Corp. is currently overvalued in the market.