Is RPM International, Inc. overvalued or undervalued?

As of 8 May 2025, RPM International, Inc. has moved from an expensive to a fair valuation grade. The company is currently fairly valued based on its financial metrics. The P/E ratio stands at 24, while the industry average is approximately 22.76. Additionally, the EV to EBITDA ratio is 20.83, which is higher than the peer average of 16.14, indicating that it is priced at a premium relative to its peers.
In comparison to its peers, Axalta Coating Systems Ltd. has an attractive valuation with a P/E of 17.41, while Olin Corp. is considered expensive with a P/E of 30.33. RPM's PEG ratio of 1.15 suggests a reasonable growth expectation relative to its price, and its ROE of 25.30% indicates strong profitability. Despite recent underperformance against the S&P 500 over the past year, RPM's long-term returns over three and five years remain solid, suggesting potential for recovery in its valuation.