Is Comfort Systems USA, Inc. overvalued or undervalued?

As of 10 June 2025, Comfort Systems USA, Inc. has moved from a fair to attractive valuation grade, indicating a positive shift in its market perception. The company appears to be undervalued based on its strong financial metrics, including a P/E ratio of 31, a PEG ratio of 0.45, and a remarkable ROCE of 49.17%. These figures suggest that the stock is trading at a discount relative to its earnings growth potential.
In comparison to its peers, Comfort Systems has a higher P/E ratio than EMCOR Group, Inc. (23.87) and AECOM (20.44), but it remains more attractive than significantly overvalued companies like APi Group Corp. (64.12). The company's dividend yield of 26.04% further enhances its appeal, especially when contrasted with the broader market performance, where it has outperformed the S&P 500 over various time frames, including a 59.01% return over the past year. Overall, these indicators point to Comfort Systems being undervalued in the current market environment.