Is Granite Construction, Inc. overvalued or undervalued?

As of 3 October 2025, Granite Construction, Inc. has moved from an expensive to a very expensive valuation grade, indicating a significant increase in perceived overvaluation. The company is overvalued based on its current metrics, with 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 peers, Sterling Infrastructure, Inc. has a higher P/E of 28.27, while Fluor Corp. stands out as very attractive with an EV to EBITDA of 13.39.
Granite Construction's stock has outperformed the S&P 500 significantly over the long term, with a 5-year return of 494.72% compared to the S&P 500's 100.56%. This strong performance may not justify its current valuation, reinforcing the conclusion that the stock is overvalued.