CSW Industrials (CSWI): Assessing Valuation Following a Recent Pullback in Share Price

CSW Industrials (CSW) shares have pulled back about 2% over the past week, giving investors a fresh chance to re-examine the company's performance. Its shares remain up 6% over the past month.

See our latest analysis for CSW Industrials.

Despite a tough year, with the share price down more than 30% year-to-date and a one-year total shareholder return of -41%, CSW Industrials’ long-term shareholders are still well ahead, enjoying gains of over 135% over five years. The latest price weakness may reflect shifting investor sentiment, but the underlying growth story keeps long-term momentum firmly in view.

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But with recent weakness and steady long-term growth, the key question for investors is whether CSW Industrials' current valuation leaves room for further gains or if the market is already factoring in its future potential.

Most Popular Narrative: 14.9% Undervalued

Compared to the last close of $244.95, the most widely followed narrative values CSW Industrials at a fair value of $287.83. This presents a double-digit upside and is anchored in strong growth assumptions and industry positioning.

Strategic focus on M&A and integration of high-growth, innovative brands has driven robust inorganic growth (+17% revenue YoY) and expanded CSWI's addressable market. As acquired brands are fully integrated into CSWI's distribution channels, cross-selling and footprint optimization are expected to drive organic growth and lift EBITDA margins over the coming years.

Read the complete narrative.

Want to see which bold acquisition-driven forecasts are behind this valuation? The narrative hints at aggressive top line expansion, steady margin gains, and a premium profit multiple. Find out how these projections add up to that double-digit upside. Dive into the full story and discover the assumptions propelling this price target.

Result: Fair Value of $287.83 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, supply chain challenges and continued reliance on acquisitions could create headwinds. This makes future growth less predictable than recent momentum suggests.

Find out about the key risks to this CSW Industrials narrative.

Another View: Market Multiples Send a Different Signal

Taking a look at the market’s lens, CSW Industrials is actually trading at a price-to-earnings ratio of 28.5x, which is noticeably higher than both its peer average of 23.4x and the industry’s 19.9x. Even compared to its fair ratio of 25.1x, the valuation looks a bit stretched. This gap could mean investors are accepting higher risk or betting on continued momentum. What could cause the market to rethink this premium?

Story Continues

See what the numbers say about this price — find out in our valuation breakdown.NYSE:CSW PE Ratio as at Nov 2025

Build Your Own CSW Industrials Narrative

If you’re interested in digging into the data on your own or think a different story emerges, you can craft your own perspective in just a few minutes. Do it your way

A good starting point is our analysis highlighting 2 key rewards investors are optimistic about regarding CSW Industrials.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include CSW.

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