Is Construction Partners, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Construction Partners, Inc. has moved from expensive to very expensive, indicating a significant shift in its perceived value. The company appears to be 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 Sterling Infrastructure, Inc. has a more reasonable EV to EBITDA of 21.61, highlighting the relative overvaluation of Construction Partners.
Despite a strong performance with a 30.01% year-to-date return and an impressive 463.77% return over the last five years, which outpaces the S&P 500's 91.29% in the same period, the current valuation metrics suggest that the stock is not justified at its current price of 115.01. Overall, the combination of high valuation ratios and the recent grade change indicates that Construction Partners, Inc. is overvalued in the current market environment.