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 overvalued based on its current metrics, with a P/E ratio of 49, a Price to Book Value of 5.23, and an EV to EBITDA ratio of 21.34. In comparison, a peer company has a P/E ratio of 50.775, indicating that AZEK is in a similar valuation range but still on the higher side.
The company's return performance has been strong, with a 1-year stock return of 30.55% compared to the S&P 500's 17.14%, suggesting that while the stock has outperformed the benchmark, its high valuation ratios raise concerns about sustainability. Overall, The AZEK Co., Inc. appears to be overvalued in the current market environment.