Is ICON plc overvalued or undervalued?

As of 19 February 2025, the valuation grade for ICON plc has moved from attractive to fair, indicating a shift in its perceived value. The company is currently fairly valued, with a P/E ratio of 12, an EV to EBITDA of 8.19, and a PEG ratio of 0.55. These ratios suggest that while ICON plc is not overvalued, it is also not presenting significant undervaluation opportunities at this time.
In comparison to its peers, ICON plc's P/E ratio of 12 is notably lower than Visa, Inc. at 33.34 and Mastercard, Inc. at 58.16, both of which are considered very expensive. Additionally, PayPal Holdings, Inc. shows a more attractive P/E of 16.85, indicating that ICON plc is in a competitive position within its sector. Despite a challenging year with a stock return of -53.79%, the recent performance over the last month shows a positive return of 15.09%, which may reflect a potential recovery phase.