Is WD-40 Co. overvalued or undervalued?

As of 21 November 2025, the valuation grade for WD-40 Co. has moved from expensive to fair, indicating a more favorable assessment of its stock price. Based on the current metrics, the company appears to be fairly valued. The P/E ratio stands at 57, while the EV to EBITDA ratio is 44.67, and the PEG ratio is 2.28, suggesting that while the stock is not undervalued, it is not excessively priced compared to its earnings growth potential.
In comparison to its peers, WD-40 Co. has a higher P/E ratio than Axalta Coating Systems Ltd. at 19.81 and CSW Industrials, Inc. at 32.31, both of which are considered fairly valued. The company's recent stock performance has been underwhelming, with a year-to-date return of -20.43%, significantly lagging behind the S&P 500's positive return of 12.26% during the same period. This performance reinforces the notion that while the stock may be fairly valued, it faces challenges in the current market environment.