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 increase in perceived overvaluation. The company is currently considered overvalued based on its high 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 more reasonable P/E of 28.27 and an EV to EBITDA of 21.61.
Despite a strong performance in the long term, with a 5-year return of 463.77% compared to the S&P 500's 91.29%, the current valuation metrics suggest that Construction Partners, Inc. is not justified at its present price level. The significant disparity in valuation ratios relative to its peers reinforces the conclusion that the stock is overvalued.