Is Argan, Inc. overvalued or undervalued?

As of 14 November 2025, Argan, Inc. has moved from a fair to an expensive valuation grade. The company appears to be overvalued, as indicated by its P/E ratio of 33, a Price to Book Value of 9.11, and an EV to EBITDA of 25.15, which are significantly higher than its peers. For instance, IES Holdings, Inc. has a P/E of 27.82 and Primoris Services Corp. has an EV to EBITDA of 13.88, suggesting that Argan, Inc. is trading at a premium compared to these competitors.
Despite its strong performance with a year-to-date return of 156.60% compared to the S&P 500's 14.49%, the high valuation ratios indicate that the stock may not be justified at its current price level. The PEG ratio of 0.22 suggests growth potential, but the overall metrics point to a valuation that exceeds its fundamental worth.