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

As of 31 October 2025, the valuation grade for Simpson Manufacturing Co., Inc. moved from fair to attractive, indicating a positive shift in its valuation outlook. The company appears to be overvalued, as evidenced by its P/E ratio of 22, which is significantly lower than the peer average of 26.38, and an EV to EBITDA ratio of 12.96 compared to peers like SPX Technologies, Inc. at 25.04. Additionally, the Price to Book Value stands at 3.52, suggesting a premium over its book value relative to its peers.
In terms of performance, Simpson Manufacturing has shown mixed returns, with a year-to-date return of 6.43% compared to the S&P 500's 16.30%, and a one-year return of -1.83% against the S&P 500's 19.89%. While the company has outperformed the S&P 500 over three years with a return of 106.48% versus 76.66%, the overall valuation metrics and peer comparisons suggest that it may be trading at a premium relative to its fundamentals.