Is SiteOne Landscape Supply, Inc. overvalued or undervalued?

As of 1 February 2023, the valuation grade for SiteOne Landscape Supply, Inc. has moved from expensive to very expensive, indicating a significant increase in perceived overvaluation. The company is currently deemed overvalued. Key ratios include a P/E ratio of 47, an EV to EBIT of 36.11, and an EV to EBITDA of 19.55, all of which suggest that the stock is trading at a premium compared to its earnings and operational efficiency.
In comparison to peers, SiteOne's P/E ratio of 47 is notably higher than CNH Industrial NV, which has a P/E of 15.72, and The Toro Co., with a P/E of 20.79. This stark contrast highlights the overvaluation of SiteOne relative to its industry counterparts. Additionally, the company's recent stock performance has lagged behind the S&P 500, with a year-to-date return of -8.17% compared to the index's gain of 2.44%, further reinforcing the valuation concerns.