Is Huron Consulting Group, Inc. overvalued or undervalued?

As of 4 April 2025, Huron Consulting Group, Inc. has moved from a very attractive to an attractive valuation grade. The company is currently considered overvalued. Key ratios include a P/E ratio of 23, an EV to EBITDA of 16.64, and a PEG ratio of 0.39, which suggests that while the growth potential is strong, the current price may not reflect its intrinsic value.
In comparison to peers, Huron's P/E ratio of 22.18 is higher than Laureate Education, Inc. at 15.34 and ICF International, Inc. at 16.67, indicating that Huron is priced at a premium relative to these companies. Additionally, despite a solid ROE of 24.46% and a ROCE of 16.76%, the elevated valuation metrics suggest that investors may be overestimating future growth. Notably, while Huron has outperformed the S&P 500 over the past year with a return of 36.38% compared to 10.26%, the current valuation may not be sustainable.