Is Comfort Systems USA, Inc. overvalued or undervalued?

As of 24 October 2025, the valuation grade for Comfort Systems USA, Inc. has moved from attractive to fair. Based on the current metrics, the company appears to be overvalued. The P/E ratio stands at 31, which is significantly higher than its peer EMCOR Group, Inc. at 29.12, and the EV to EBITDA ratio is 24.98 compared to EMCOR's 19.49, indicating a premium valuation. Additionally, the PEG ratio of 0.45 suggests that the stock may be overvalued relative to its growth prospects.
In terms of peer comparison, Comfort Systems is categorized as expensive, while EMCOR is rated fair, highlighting a disparity in valuation metrics. The company's recent performance has been impressive, with a year-to-date return of 131.49% compared to the S&P 500's 15.47%, suggesting strong market performance despite the valuation concerns.