Is CECO Environmental Corp. overvalued or undervalued?

As of 10 June 2025, the valuation grade for CECO Environmental Corp. has moved from fair to expensive. The company appears to be overvalued based on its current metrics. Key ratios include a P/E ratio of 16, an EV to EBITDA of 20.96, and a ROE of 20.39%.
In comparison to its peers, CECO's P/E ratio is lower than ACM Research, Inc. at 18.37 and higher than The Gorman-Rupp Co. at 21.65, indicating a mixed positioning within its industry. The PEG ratio of 0.08 suggests that the stock may not be growing at a rate that justifies its current price. Despite a strong 3-year return of 385.88%, which significantly outperformed the S&P 500's 58.74%, the current valuation metrics indicate that CECO Environmental Corp. is overvalued.