Is Construction Partners, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Construction Partners, Inc. moved from expensive to very expensive, indicating a significant deterioration in its valuation outlook. The company is currently overvalued, with a P/E ratio of 75, a Price to Book Value of 7.65, and an EV to EBITDA of 28.25. In comparison, peers such as MasTec, Inc. have a P/E of 57.22 and an EV to EBITDA of 20.31, while Sterling Infrastructure, Inc. shows a P/E of 28.27 and an EV to EBITDA of 21.61, highlighting the premium at which Construction Partners is trading.
Despite its strong historical performance, with a 5-year return of 463.77% compared to the S&P 500's 91.29%, the current valuation metrics suggest that the stock may not be justified at these levels. The elevated ratios, particularly the P/E and EV to EBITDA, indicate that investors may be paying too much for future growth that may not materialize.