Is Ameresco, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Ameresco, Inc. has moved from attractive to very expensive, indicating a significant shift in its perceived value. The company is currently overvalued, as reflected by its P/E ratio of 12, which is notably lower than the peer average of approximately 17.40. Additionally, the EV to EBITDA ratio stands at 13.20, while its PEG ratio is impressively low at 0.58, suggesting that despite growth potential, the current valuation does not justify the price.
In comparison with its peers, Sterling Infrastructure, Inc. has a P/E of 28.27, while IES Holdings, Inc. has a P/E of 27.82, both indicating that Ameresco's valuation is not aligned with industry standards. Furthermore, despite its recent strong performance, with a year-to-date return of 70.06% compared to the S&P 500's 13.30%, the long-term outlook remains concerning, as Ameresco has underperformed over the last three and five years. This combination of high valuation metrics and underwhelming long-term returns reinforces the conclusion that Ameresco, Inc. is overvalued.