Is WD-40 Co. overvalued or undervalued?

As of 8 April 2025, the valuation grade for WD-40 Co. has moved from very expensive to expensive, indicating a shift in perception regarding its market valuation. The company is currently considered overvalued. Key ratios include a P/E ratio of 57, an EV to EBITDA of 44.67, and a PEG ratio of 2.28, all of which suggest that the stock is priced significantly higher than its earnings and growth prospects would justify.
In comparison to peers, WD-40 Co. has a P/E ratio of 56.65, while CSW Industrials, Inc. is valued more fairly at a P/E of 34.91, and H.B. Fuller Co. is categorized as very expensive with a P/E of 15.59. This disparity highlights that WD-40 Co. is trading at a premium compared to its peers, further supporting the conclusion of overvaluation. Notably, the company's recent stock performance has lagged behind the S&P 500, with a year-to-date return of -2.36% compared to the index's 2.44%, reinforcing concerns about its current valuation.