Is SiteOne Landscape Supply, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for SiteOne Landscape Supply, Inc. has moved from expensive to very expensive, indicating a significant deterioration in its valuation outlook. The company is considered overvalued based on its current metrics. The P/E ratio stands at 47, while the EV to EBITDA ratio is 19.55, and the Price to Book Value is 3.52, all of which suggest that the stock is trading at a premium compared to its earnings and book value.
In comparison to its peers, SiteOne's P/E ratio of 52.70 is notably higher than that of CNH Industrial NV, which has a P/E of 19.42, indicating that SiteOne is significantly more expensive relative to its earnings. Additionally, BorgWarner, Inc. has an EV to EBITDA of 6.84, further emphasizing the overvaluation of SiteOne. While the company has outperformed the S&P 500 in the past week with a return of 2.58% compared to 1.70%, its longer-term performance has been disappointing, with a 1-year return of -17.73% versus the S&P 500's 14.08%.