Is AECOM overvalued or undervalued?

As of 20 May 2025, AECOM's valuation grade has moved from attractive to fair, indicating a shift in its perceived value. The company is currently fairly valued. Key ratios include a P/E ratio of 20, an EV to EBITDA of 13.73, and a PEG ratio of 0.16, suggesting that while the company has strong earnings growth potential, its current price may not reflect significant undervaluation.
In comparison to its peers, AECOM's P/E ratio is lower than EMCOR Group, Inc. at 23.87 and Comfort Systems USA, Inc. at 30.39, both of which are also fairly valued but command higher multiples. Notably, AECOM's ROCE stands at an impressive 29.62%, indicating efficient capital use relative to its peers. The company's recent stock performance has outpaced the S&P 500 over the past year, with a return of 24.24% compared to the index's 10.26%, reinforcing its competitive position in the market.