Is Booz Allen Hamilton Holding Corp. overvalued or undervalued?

As of 31 January 2025, Booz Allen Hamilton Holding Corp. has moved from an attractive to a fair valuation grade. The company is currently fairly valued based on its financial metrics. The P/E ratio stands at 19, while the industry average is approximately 18.46, indicating a slight premium. The EV to EBITDA ratio is 13.31, which is competitive compared to peers like PayPal Holdings, which has a ratio of 11.45, suggesting that Booz Allen may not be significantly overvalued relative to its industry.
In terms of performance, Booz Allen's PEG ratio is notably low at 0.40, indicating potential for growth relative to its price, while the ROE is exceptionally high at 84.67%, showcasing strong profitability. However, the company has underperformed the S&P 500 over the past year, with a return of -34.98% compared to the index's 10.26%. Overall, Booz Allen Hamilton appears to be fairly valued, with its ratios aligning closely with industry standards and peers.