Is Granite Construction, Inc. overvalued or undervalued?

As of 19 February 2025, Granite Construction, Inc. has moved from an attractive to a fair valuation grade. The company appears to be fairly valued at this time. Key ratios include a P/E ratio of 25, a Price to Book Value of 4.05, and an EV to EBITDA of 13.23.
In comparison to its peers, Granite's P/E ratio of 24.34 is lower than Dycom Industries, Inc. at 28.83, which is considered expensive, while Sterling Infrastructure, Inc. has a P/E of 23.94, indicating a fair valuation. The company's strong dividend yield of 42.75% and solid ROE of 16.05% suggest that it remains an attractive investment despite the recent grade change. Moreover, Granite Construction has outperformed the S&P 500 over the past year, with a return of 46.01% compared to the index's 10.26%.