Is MAXIMUS, Inc. overvalued or undervalued?

As of 6 February 2025, the valuation grade for MAXIMUS, Inc. has moved from attractive to fair. The company is currently fairly valued based on its financial metrics. The P/E ratio stands at 13, while the EV to EBITDA ratio is 8.13 and the PEG ratio is notably low at 0.35, indicating potential for growth relative to its price.
In comparison to peers, MAXIMUS, Inc. has a P/E ratio of 12.96, which is more favorable than R1 RCM, Inc. that is considered risky with a P/E of 0.00, and Remitly Global, Inc. which also shows a risky valuation with a P/E of -1091.15. Despite recent underperformance with a 1-year return of -22.41% compared to the S&P 500's 10.26%, the company's solid ROCE of 17.51% and ROE of 18.06% suggest it maintains a stable operational efficiency. Overall, MAXIMUS, Inc. appears to be fairly valued in the current market context.