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

As of 17 October 2025, the valuation grade for Great Lakes Dredge & Dock Corp. has moved from attractive to fair, indicating a shift in its perceived value. The company appears to be fairly valued at this time. Key ratios include a P/E ratio of 11, an EV to EBITDA of 7.54, and a PEG ratio of 0.14, which suggests that the stock is not significantly overvalued compared to its earnings growth potential.
In comparison to peers, IES Holdings, Inc. has a much higher P/E ratio of 27.82, while Argan, Inc. is also fairly valued with a P/E of 23.92. This indicates that Great Lakes Dredge & Dock Corp. is trading at a lower valuation compared to some of its peers. However, the company's stock has underperformed against the S&P 500 over multiple periods, including a 1-year return of -10.24% compared to the S&P 500's 14.08%, reinforcing the notion that while it may be fairly valued, it has struggled to deliver returns in the current market environment.