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 undervalued, with a P/E ratio of 22, which is lower than the peer average of 26.38 for similar companies, and an EV to EBITDA ratio of 12.96, also below the peer average of 15.61. Additionally, the company boasts a strong ROCE of 20.82% and a dividend yield of 72.88%, suggesting robust financial health.
In comparison to its peers, Carlisle Cos., Inc. has a significantly higher P/E ratio of 33.32, while Watsco, Inc. stands at 31.06, both indicating that Simpson Manufacturing is relatively undervalued in the building products industry. Despite recent underperformance against the S&P 500 over the past year, with a return of -3.02% compared to 19.89% for the index, the strong long-term performance of 110.20% over three years suggests potential for recovery and growth.