Is Fluor Corp. overvalued or undervalued?

As of 1 August 2025, the valuation grade for Fluor Corp. has moved from attractive to very attractive, indicating a strong improvement in its perceived value. The company appears to be undervalued, supported by a P/E ratio of 4, an EV to EBITDA of 11.60, and an impressive ROE of 50.43%. In comparison, peers such as MasTec, Inc. and APi Group Corp. are considered expensive with P/E ratios of 57.22 and 87.46, respectively, highlighting Fluor's relative valuation advantage.
Despite a challenging year-to-date return of -13.99% compared to the S&P 500's 12.22%, Fluor Corp. has shown remarkable long-term performance, with a 5-year return of 350.32% against the S&P 500's 96.61%. This suggests that while recent performance may not reflect its intrinsic value, the company's strong fundamentals and favorable valuation ratios position it well for future growth.