Is CECO Environmental Corp. overvalued or undervalued?

As of 30 July 2025, the valuation grade for CECO Environmental Corp. has moved from fair to expensive, indicating a shift towards overvaluation. The company appears overvalued based on its P/E ratio of 16, which is significantly lower than the peer average of 26.01, and its EV to EBITDA ratio of 20.96, which also exceeds the industry benchmark. Additionally, the PEG ratio of 0.08 suggests that the stock may not be priced appropriately relative to its growth potential.
In comparison to its peers, Enerpac Tool Group Corp. has a P/E of 34.53 and ACM Research, Inc. stands out with a very attractive P/E of 12.76. The notable outlier in the peer group is Ultra Clean Holdings, Inc., which has an extraordinarily high P/E of 417.40, indicating significant risk. CECO Environmental Corp. has shown impressive returns, outperforming the S&P 500 with a 1-year return of 82.81% compared to the index's 17.14%, reinforcing the notion that while the stock has performed well, its current valuation may not be justified.