Is Bowman Consulting Group Ltd. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Bowman Consulting Group Ltd. has moved from very attractive to fair. The company appears to be overvalued based on its current metrics. The P/E ratio stands at 204, significantly higher than the peer average of 81.27, while the EV to EBITDA ratio is 20.78, indicating a premium valuation compared to peers like Concrete Pumping Holdings, Inc., which has an EV to EBITDA of 7.66. Additionally, the PEG ratio of 1.65 suggests that the stock may not be justified at its current price given its growth prospects.
In terms of performance, Bowman Consulting has outperformed the S&P 500 with a year-to-date return of 67.25% compared to the index's 13.30%. However, the high valuation ratios and the recent downgrade in the valuation grade suggest that the stock may not sustain this level of performance going forward.