Is UFP Industries, Inc. overvalued or undervalued?

As of 19 September 2025, the valuation grade for UFP Industries, Inc. has moved from fair to attractive, indicating a more favorable assessment of its worth. The company appears undervalued based on its current metrics, with a P/E ratio of 16, an EV to EBITDA of 8.59, and a Price to Book Value of 1.80. In comparison to peers, UFP Industries has a lower P/E ratio than Louisiana-Pacific Corp. (26.87) and a more favorable EV to EBITDA than Trex Co., Inc. (27.73).
Despite the attractive valuation, UFP Industries has underperformed compared to the S&P 500 over various periods, with a year-to-date return of -15.50% versus the S&P 500's 13.31%. However, over a 5-year period, the company has delivered a return of 75.27%, which is significantly lower than the S&P 500's 100.77%. This mixed performance suggests that while the current valuation is appealing, the stock's recent returns may warrant caution for potential investors.