Is Construction Partners, Inc. overvalued or undervalued?

As of 7 July 2025, the valuation grade for Construction Partners, Inc. has moved from expensive to very expensive. The company is currently overvalued, as indicated by a P/E ratio of 75, a Price to Book Value of 7.65, and an EV to EBITDA of 50.88. In comparison, peers such as MasTec, Inc. have a P/E of 57.22 and EV to EBITDA of 20.31, while Sterling Infrastructure, Inc. shows a more reasonable P/E of 28.27 and EV to EBITDA of 21.61, highlighting the significant premium at which Construction Partners is trading.
Despite its overvaluation, Construction Partners, Inc. has delivered impressive returns, outperforming the S&P 500 with a 1-year return of 83.12% compared to the S&P 500's 17.14%. This strong performance may attract investors, but the high valuation ratios suggest caution moving forward.