Is Granite Construction, Inc. overvalued or undervalued?

As of 17 October 2025, Granite Construction, Inc. has moved from a fair to an expensive valuation grade. The company is currently overvalued, as indicated by its P/E ratio of 25, which is higher than the industry average, and an EV to EBITDA ratio of 13.23, also above the peer average. Additionally, the PEG ratio stands at a notably low 0.23, suggesting that the stock may not be priced appropriately relative to its growth potential.
In comparison to its peers, MasTec, Inc. has a significantly higher P/E ratio of 57.22, while Sterling Infrastructure, Inc. is at 28.27, indicating that Granite's valuation is on the higher end within the industry. Despite this, Granite has outperformed the S&P 500 with a one-year return of 28.32% compared to the index's 14.08%, and a remarkable three-year return of 286.71% versus 81.19% for the S&P 500, highlighting its strong historical performance.