Is Comfort Systems USA, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Comfort Systems USA, Inc. has moved from very expensive to expensive, indicating a slight improvement in perceived value. The company appears to be overvalued based on its current metrics. Key ratios include a P/E ratio of 31, an EV to EBITDA of 21.24, and a PEG ratio of 0.45, which suggests that while growth may be anticipated, the current price does not align with the earnings potential relative to its peers.
In comparison to its peers, Comfort Systems USA, Inc. has a higher P/E ratio than EMCOR Group, Inc. at 29.12 and AECOM at 22.09, indicating a premium valuation despite similar or lower growth expectations. Additionally, the company's recent performance has significantly outpaced the S&P 500, with a year-to-date return of 95.24% compared to the index's 13.30%, reinforcing the narrative of strong market performance but also highlighting potential overvaluation concerns.