Is ICON plc overvalued or undervalued?

As of 17 October 2025, the valuation grade for ICON plc has moved from very attractive to attractive. The company is currently considered overvalued based on its valuation ratios, which include a P/E ratio of 12, an EV to EBITDA of 8.19, and a PEG ratio of 0.55. In comparison, peer companies such as Booz Allen Hamilton Holding Corp. have a P/E of 15.81 and an EV to EBITDA of 12.90, while Charles River Laboratories International, Inc. has a significantly higher P/E of 27.84, indicating that ICON plc's valuation metrics are lagging behind its peers.
Additionally, ICON plc has underperformed relative to the S&P 500, with a year-to-date return of -11.75% compared to the S&P 500's 13.30%, and a one-year return of -37.32% versus the S&P 500's 14.08%. This underperformance reinforces the notion that the stock may be overvalued in the current market context.