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

As of 31 October 2025, the valuation grade for Simpson Manufacturing Co., Inc. has moved from fair to attractive, indicating a more favorable assessment of its value. Despite this positive shift, the company appears to be overvalued based on its current metrics, particularly with a P/E ratio of 22, which is higher than the industry average, and an EV to EBITDA ratio of 12.96. Additionally, the Price to Book Value stands at 3.52, suggesting that the stock may not be justified at its current price level.
In comparison to its peers, Simpson Manufacturing Co., Inc. has a P/E ratio lower than Carlisle Cos., Inc. at 33.32 and Watsco, Inc. at 31.06, both of which are considered very expensive. However, it is still higher than Masco Corp., which has a P/E of 18.57 and is categorized as risky. The recent stock performance shows that while Simpson has returned 6.43% year-to-date, it lags behind the S&P 500's 16.30% return, reinforcing the notion that the stock may be overvalued relative to broader market performance.