Is Valvoline, Inc. overvalued or undervalued?

As of 8 May 2025, the valuation grade for Valvoline, Inc. has moved from attractive to fair, indicating a shift in its perceived value. The company appears to be fairly valued based on its current metrics, with a P/E ratio of 17, an EV to EBITDA of 13.31, and a PEG ratio of 0.68. In comparison to peers, Service Corp. International has a higher P/E of 21.11, while H&R Block, Inc. offers a lower P/E of 13.76, showcasing a range of valuations within the industry.
Valvoline's recent stock performance has lagged behind the S&P 500, with a 1-year return of -2.75% compared to the index's 17.14%, although it has shown a solid 5-year return of 96.94%, which is on par with the S&P 500's 96.61%. Overall, the company's valuation metrics suggest it is fairly valued in the current market context.