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. The company exhibits a P/E ratio of 16, a Price to Book Value of 3.29, and an EV to EBITDA ratio of 20.96, all of which suggest that the stock is trading at a premium compared to its earnings and book value.
In comparison to its peers, CECO's P/E ratio of 26.01 is significantly higher than that of ACM Research, Inc., which stands at 12.76, and even higher than Enerpac Tool Group Corp. at 34.53. The PEG ratio of 0.08 also highlights a disparity in growth expectations relative to its price. Despite CECO's strong performance with a year-to-date return of 61.69% compared to the S&P 500's 13.30%, the current valuation metrics indicate that the stock is overvalued.