Is Pool Corp. overvalued or undervalued?

As of 10 October 2025, Pool Corp. has moved from an expensive to a very expensive valuation grade. The company appears overvalued based on its current metrics. The P/E ratio stands at 27, significantly higher than the peer average of 20.94 for WESCO International, and the EV to EBITDA ratio is 19.32, which also exceeds the peer average of 13.40 for WESCO. Additionally, Pool Corp.'s Price to Book Value is 9.02, indicating a premium compared to its peers.
In the context of recent performance, Pool Corp. has underperformed relative to the S&P 500, with a year-to-date return of -14.97% compared to the S&P 500's 11.41%. This trend of negative returns over multiple periods further reinforces the notion that the stock is overvalued in the current market environment.