Is SiteOne Landscape Supply, Inc. overvalued or undervalued?

As of 7 July 2025, the valuation grade for SiteOne Landscape Supply, Inc. has moved from expensive to very expensive, indicating a significant deterioration in its valuation appeal. The company is currently overvalued, with a P/E ratio of 47, an EV to EBITDA ratio of 19.55, and a Price to Book Value of 3.52. In comparison, peers such as CNH Industrial NV have a P/E of 19.42 and an EV to EBITDA of 10.28, highlighting the relative overvaluation of SiteOne.
Recent stock performance shows that SiteOne has underperformed against the S&P 500, with a 1-year return of -7.23% compared to the index's 17.14%. This further reinforces the notion that the stock may not justify its current high valuation amidst weaker returns.