Is Skyline Champion Corp. overvalued or undervalued?

As of 13 June 2025, the valuation grade for Skyline Champion Corp. has moved from expensive to fair. Based on the analysis, the company is currently fairly valued. The P/E ratio stands at 18, while the industry average P/E is lower at 16.34, indicating a slight premium. Additionally, the EV to EBITDA ratio is 11.12, which is more favorable compared to its peer M.D.C. Holdings, Inc. at 15.80, but less favorable than Tri Pointe Homes, Inc. at 5.04. The PEG ratio of 0.50 suggests that the stock may be undervalued relative to its growth prospects.
In terms of return metrics, Skyline Champion Corp. has underperformed the S&P 500 over the past year with a return of -12.57% compared to the index's 10.26%. However, the company has shown robust ROCE at 24.72% and ROE at 13.06%, indicating strong operational efficiency. Overall, while the stock has faced challenges recently, its valuation appears reasonable in the current market context.