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 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 average. Additionally, the PEG ratio stands at a notably low 0.08, suggesting that the stock may not be justified at its current price level.
In comparison to its peers, Enerpac Tool Group Corp. has a P/E of 34.53, while ACM Research, Inc. offers a more attractive P/E of 12.76. This highlights that CECO Environmental Corp. is trading at a premium relative to some of its competitors despite its lower growth prospects. Notably, CECO has outperformed the S&P 500 with a year-to-date return of 61.69% compared to the index's 13.30%, but this strong performance does not mitigate the concerns regarding its current valuation.