Is IQVIA Holdings, Inc. overvalued or undervalued?

As of 11 April 2025, the valuation grade for IQVIA Holdings, Inc. has moved from very expensive to expensive, indicating a slight improvement in perceived value but still suggesting high valuation levels. The company is currently considered overvalued based on its P/E ratio of 29, which is significantly higher than its peer ICON plc, which has a P/E of 12.67. Additionally, IQVIA's EV to EBITDA ratio stands at 15.15, compared to ICON's 8.32, further highlighting the premium at which IQVIA is trading.
In terms of profitability, IQVIA boasts a ROE of 22.52% and a ROCE of 12.33%, which are commendable figures but may not justify the high valuation multiples in comparison to its peers. The PEG ratio of 28.87 also suggests that the stock is priced for growth that may not be sustainable. While IQVIA has seen a 13.26% return over the past month, it has underperformed the S&P 500 on a year-to-date basis, with a decline of 21.04% compared to the index's 2.44% gain, reinforcing the notion that the stock may be overvalued in the current market environment.