Is Great Lakes Dredge & Dock Corp. overvalued or undervalued?

As of 17 October 2025, Great Lakes Dredge & Dock Corp. has moved from an attractive to a fair valuation grade. The company appears to be fairly valued based on its current metrics. The P/E ratio stands at 11, while the EV to EBITDA ratio is 7.54, and the PEG ratio is notably low at 0.14, indicating potential undervaluation relative to growth expectations.
In comparison with peers, IES Holdings, Inc. has a significantly higher P/E ratio of 27.82, while Granite Construction, Inc. shows a P/E of 25.90, suggesting that Great Lakes is positioned more favorably within its industry. Despite this, the company's recent stock performance has lagged behind the S&P 500, with a year-to-date return of -4.52% compared to the index's 13.30%, which reinforces the perception of it being fairly valued amidst broader market gains.