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 perception. The company appears to be overvalued based on its current metrics, with a P/E ratio of 12, which is lower than the peer average of approximately 15.81 for Booz Allen Hamilton Holding Corp. and 27.84 for Charles River Laboratories International, suggesting that ICON plc is trading at a discount compared to some of its peers. Additionally, the EV to EBITDA ratio stands at 8.19, which is more favorable than the industry average, but the PEG ratio of 0.55 indicates potential growth at a reasonable price.
In terms of performance, ICON plc has underperformed compared to the S&P 500, with a year-to-date return of -11.75% versus the index's 13.30%. Over one year, the stock has declined by 37.32%, while the S&P 500 has gained 14.08%. This stark contrast in returns reinforces the notion that ICON plc may be overvalued relative to its growth prospects and market performance.