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 more favorable assessment of its value. The company appears to be overvalued based on its current metrics, with a P/E ratio of 22, a Price to Book Value of 3.52, and an EV to EBITDA of 12.96. In comparison to peers, SPX Technologies, Inc. has a significantly higher P/E of 45.73, while A. O. Smith Corp. has a P/E of 26.10, suggesting that Simpson's valuation is relatively high within its industry.
Despite the attractive grade change, recent stock performance shows that Simpson has underperformed against the S&P 500, with a year-to-date return of 4.77% compared to 16.30% for the index. This underperformance, coupled with its higher valuation ratios, reinforces the conclusion that Simpson Manufacturing Co., Inc. is overvalued.