Is The AZEK Co., Inc. overvalued or undervalued?

As of 7 August 2024, The AZEK Co., Inc. has moved from an expensive to a very expensive valuation grade. The company is currently overvalued, with a P/E ratio of 49, significantly higher than the industry average. Key ratios include an EV to EBITDA of 21.34 and a PEG ratio of 20.55, both indicating a premium valuation compared to peers.
In comparison to its peers, The AZEK Co., Inc. has a higher P/E than Watsco, Inc. at 32.52 and Masco Corp. at 15.28, suggesting that it is priced at a substantial premium. Additionally, its EV to EBIT ratio of 33.09 further underscores this overvaluation. While the company has outperformed the S&P 500 over the past year with a return of 16.22% compared to 10.26%, this does not justify its current very expensive valuation status.