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 shift towards overvaluation. The company appears to be overvalued based on its P/E ratio of 12, which is significantly lower than the peer average of approximately 17.40, and its EV to EBITDA ratio of 13.20, which is also below the peer average of 15.31. Additionally, the PEG ratio of 0.58 suggests that the stock may not be justified at its current price given its growth prospects.
In comparison to its peers, Sterling Infrastructure, Inc. has a P/E ratio of 28.27, while IES Holdings, Inc. stands at 27.82, both indicating a more favorable valuation relative to Ameresco. Despite 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 shows a decline over three and five years, suggesting that the current high valuation may not be sustainable.