Is CECO Environmental Corp. overvalued or undervalued?

As of 17 October 2025, the valuation grade for CECO Environmental Corp. has moved from fair to expensive, indicating that the stock is overvalued. Key valuation ratios include a P/E ratio of 16, an EV to EBITDA of 20.96, and a Price to Book Value of 3.29. In comparison, peers such as Enerpac Tool Group Corp. have a higher P/E of 34.53, while ACM Research, Inc. stands out with a much lower P/E of 12.76, suggesting that CECO is trading at a premium relative to some of its competitors.
Despite the recent stock performance, where CECO has outperformed the S&P 500 with a YTD return of 61.69% compared to the index's 13.30%, the elevated valuation ratios suggest that the stock may not be a prudent investment at its current price. Overall, CECO Environmental Corp. appears to be overvalued based on the provided metrics.