Is Booz Allen Hamilton Holding Corp. overvalued or undervalued?

As of 17 October 2025, Booz Allen Hamilton Holding Corp. has moved from a fair to attractive valuation grade, indicating a more favorable assessment of its stock. The company appears to be undervalued given its P/E ratio of 19, which is competitive compared to peers like ICON plc at 14.64 and Charles River Laboratories at 27.84. Additionally, Booz Allen's PEG ratio of 0.40 suggests strong growth potential relative to its price, while its EV to EBITDA ratio of 13.31 further supports its attractive valuation.
In terms of performance, Booz Allen has faced challenges, with a year-to-date return of -23.82%, significantly underperforming the S&P 500's 13.30% return over the same period. However, its strong ROE of 84.67% and ROCE of 30.38% highlight the company's efficiency in generating returns, reinforcing the notion that it may be undervalued relative to its financial performance.