Is MAXIMUS, Inc. overvalued or undervalued?

As of 6 February 2025, the valuation grade for MAXIMUS, Inc. has moved from attractive to fair, indicating a shift in its perceived value. Based on the current metrics, the company appears to be fairly valued. The P/E ratio stands at 13, the EV to EBITDA ratio is 8.13, and the PEG ratio is notably low at 0.35, suggesting that the stock may not be overpriced relative to its growth potential.
In comparison to its peers, MAXIMUS, Inc. has a P/E ratio of 15.70 against Medpace Holdings, Inc.'s high of 33.13, which is very expensive, and Genpact Ltd.'s fair valuation at 14.38. Additionally, the EV to EBITDA ratio for MAXIMUS is better than Medpace's 27.32 but less favorable than ADT, Inc.'s attractive 5.12. While MAXIMUS has shown a year-to-date return of 19.42%, it lags behind the S&P 500's 12.22%, and over the past three years, it has returned 49.11% compared to the S&P 500's 70.41%. This performance reinforces the notion that MAXIMUS is fairly valued in the current market context.