Is Ameresco, Inc. overvalued or undervalued?

As of 22 August 2025, the valuation grade for Ameresco, Inc. has moved from very expensive to expensive. Based on the current metrics, the company appears to be overvalued. Key ratios include a P/E ratio of 12, an EV to EBITDA of 13.20, and a PEG ratio of 0.58, which suggest that the stock may not be justified at its current price level compared to its earnings growth potential.
In comparison to peers, Ameresco's P/E ratio of 12 is significantly lower than Sterling Infrastructure, Inc. at 28.27 and IES Holdings, Inc. at 27.82, indicating that Ameresco is trading at a discount relative to these companies. Furthermore, while Ameresco has shown strong short-term returns, with a 1-month return of 37.33% compared to the S&P 500's 2.33%, its long-term performance has been lackluster, with a 3-year return of -57.26% versus the S&P 500's 70.41%. This discrepancy reinforces the view that Ameresco is currently overvalued.