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 based on its current metrics, with a P/E ratio of 33, a Price to Book Value of 9.11, and an EV to EBITDA of 25.15. In comparison to its peers, IES Holdings, Inc. has a P/E of 27.82 and Primoris Services Corp. has a P/E of 25.49, indicating that Argan, Inc. is trading at a premium relative to these companies.
Despite its strong performance, with a year-to-date return of 152.74% compared to the S&P 500's 14.49%, the high valuation ratios suggest that the stock may not be justified at its current price level. The PEG ratio of 0.22 indicates growth expectations are priced in, but the overall valuation metrics signal caution for potential investors.