Is Jacobs Solutions, Inc. overvalued or undervalued?

As of 17 October 2025, Jacobs Solutions, Inc. moved from fair to very expensive, indicating a significant shift in its valuation outlook. The company is currently overvalued, as reflected by its P/E ratio of 29, which is notably lower than its peer MSCI, Inc. at 62.31, and its EV to EBITDA ratio of 13.59, which is also less favorable compared to peers like Verisk Analytics, Inc. at 89.01. Additionally, the Price to Book Value stands at 3.96, suggesting that the stock may not justify its current price based on its book value.
In terms of performance, Jacobs Solutions has shown a year-to-date return of 17.49%, outperforming the S&P 500's return of 13.30% during the same period. However, over a longer horizon, its 3-year return of 66.01% trails behind the S&P 500's 81.19%, which further underscores the concerns regarding its valuation amidst a competitive landscape.