Is UFP Industries, Inc. overvalued or undervalued?

As of 3 October 2025, the valuation grade for UFP Industries, Inc. has moved from fair to attractive, indicating a positive shift in its valuation outlook. The company appears to be undervalued relative to its peers, with a P/E ratio of 16, compared to Mohawk Industries, Inc. at 17.49 and Louisiana-Pacific Corp. at 26.87. Additionally, UFP Industries has an EV to EBITDA ratio of 8.59, which is more favorable than the industry average, suggesting it is trading at a discount.
Despite the attractive valuation metrics, UFP Industries has faced significant stock performance challenges, with a year-to-date return of -18.17%, while the S&P 500 has gained 14.18% in the same period. This stark contrast highlights the potential for recovery and growth in the company's stock price, reinforcing the notion that it is currently undervalued.