Is Energy Services of America Corp. overvalued or undervalued?

As of 11 August 2025, the valuation grade for Energy Services of America Corp. has moved from attractive to expensive, indicating a shift towards overvaluation. The company appears overvalued based on its current P/E ratio of 30, which is significantly higher than its peers, such as Orion Group Holdings, Inc. with a P/E of 28.58 and MISTRAS Group, Inc. at 15.68. Additionally, the EV to EBITDA ratio stands at 11.23, which also suggests a premium compared to the industry average.
In comparison to its peers, Energy Services of America Corp. has a higher Price to Book Value of 3.67, while the industry is generally more favorably priced. The company's ROE of 12.28% is respectable, but it does not justify the elevated valuation ratios. Recent stock performance shows that while the company had a strong 5-year return of 929.59%, it has underperformed the S&P 500 year-to-date with a decline of 20.05%, which reinforces the notion that the stock may be overvalued at its current price of 10.09.