Is Energy Services of America Corp. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Energy Services of America Corp. has moved from fair to expensive, indicating a shift towards overvaluation. The company appears to be overvalued based on its 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 is lower than the peer average, but the EV to Sales ratio of 0.65 suggests that the company may not be generating sufficient revenue relative to its enterprise value.
In terms of performance, Energy Services of America Corp. has shown strong returns over the long term, with a 5-year return of 862.86%, compared to the S&P 500's 91.29%. However, year-to-date, the company has underperformed with a return of -19.89% against the S&P 500's 13.30%. This discrepancy highlights the potential risks associated with its current valuation, reinforcing the conclusion that the stock is overvalued.