Is Simpson Manufacturing Co., Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Simpson Manufacturing Co., Inc. has moved from fair to very expensive, indicating that the stock is overvalued. The company exhibits a P/E ratio of 22, a Price to Book Value of 3.52, and an EV to EBITDA of 12.96, which are all higher than many of its peers, suggesting a premium valuation relative to its earnings and assets.
In comparison to its peers, Simpson's P/E ratio is lower than SPX Technologies, Inc. at 45.73 but higher than A. O. Smith Corp. at 26.10, indicating a mixed competitive positioning. The recent stock performance shows that while Simpson has outperformed the S&P 500 in the past week with a return of 4.86% compared to 1.70%, it has lagged over the longer term, with a 1-year return of -9.33% versus the S&P 500's 14.08%. This trend reinforces the notion that the stock may be overvalued relative to its growth prospects.