Is Exponent, Inc. overvalued or undervalued?

As of 20 May 2025, Exponent, Inc. has moved from a fair to an expensive valuation grade. The company is currently overvalued based on its high P/E ratio of 54, which is significantly above the peer average P/E of approximately 51.81. Additionally, Exponent's EV to EBITDA ratio stands at 33.13, while its peers average around 31.85, indicating a premium valuation. The PEG ratio of 17.23 further underscores the expensive nature of the stock compared to its growth prospects.
In comparison to its peers, Exponent, Inc. shows a robust ROCE of 66.00% and an ROE of 20.98%, which are commendable but do not justify the current valuation levels. The company's recent stock performance has lagged behind the S&P 500, with a year-to-date decline of 17.23% compared to a gain of 2.44% for the index, reinforcing the notion that the stock may be overvalued in the current market context.