Is ICON plc overvalued or undervalued?

As of 22 August 2025, the valuation grade for ICON plc has moved from fair to attractive, indicating a shift in perception towards the company's worth. Based on the current metrics, ICON plc appears to be undervalued, with a P/E ratio of 12, an EV to EBITDA of 8.19, and a PEG ratio of 0.55, all suggesting that the stock is trading at a discount relative to its earnings growth potential.
In comparison to its peers, ICON plc has a lower P/E ratio than Booz Allen Hamilton Holding Corp. at 15.81 and Charles River Laboratories at 27.84, while also showing a favorable EV to EBITDA ratio compared to WEX, Inc. at 7.64. Despite the attractive valuation, the company has underperformed against the S&P 500 over various periods, notably with a year-to-date return of -14.44% compared to the S&P 500's 12.22%, which may temper investor enthusiasm despite the attractive valuation metrics.