Is Fluor Corp. overvalued or undervalued?

As of 2 May 2025, Fluor Corp. has moved from a very attractive to an attractive valuation grade. The company is currently considered undervalued based on its P/E ratio of 4, which is significantly lower than peers such as EMCOR Group, Inc. with a P/E of 23.87 and AECOM at 20.44. Additionally, Fluor's EV to EBITDA stands at 11.60, while the industry average is notably higher, indicating potential for growth.
Fluor Corp. also exhibits strong financial metrics with a ROCE of 20.07% and an impressive ROE of 50.43%. Compared to its peers, Fluor's PEG ratio of 0.01 suggests that it is undervalued relative to its growth potential, especially when contrasted with Comfort Systems USA, Inc. which has a PEG of 0.44. Despite a recent decline in stock price, Fluor's long-term performance has outpaced the S&P 500, with a 3-year return of 111.23% compared to the index's 58.74%.