Is ICON plc overvalued or undervalued?

As of 17 October 2025, the valuation grade for ICON plc has moved from very attractive to attractive, indicating a shift in its perceived value. Based on the current metrics, ICON plc appears to be overvalued. The P/E ratio stands at 12, which is lower than its peer Booz Allen Hamilton Holding Corp. at 15.81, while its EV to EBITDA ratio of 8.19 is also less favorable compared to WEX, Inc. at 7.64. Additionally, the PEG ratio of 0.55 suggests that the stock may be priced higher relative to its growth prospects compared to peers.
In terms of performance, ICON plc has underperformed against the S&P 500, with a year-to-date return of -11.75% compared to the index's 13.30%. Over the past year, the stock has declined by 37.32%, while the S&P 500 has gained 14.08%, further reinforcing the notion that ICON plc is currently overvalued in the market.