Is MISTRAS Group, Inc. overvalued or undervalued?

As of 8 May 2025, MISTRAS Group, Inc. has moved from a fair to attractive valuation grade. The company is currently considered undervalued, with a P/E ratio of 11, which is significantly lower than its peer Argan, Inc. at 28.81 and Great Lakes Dredge & Dock Corp. at 11.30. Additionally, MISTRAS has an EV to EBITDA ratio of 5.60, compared to Argan's 21.40, indicating a more favorable valuation relative to its earnings potential.
The PEG ratio of 0.30 further supports the undervaluation thesis, as it suggests that the company's growth prospects are not being fully recognized in its current price. With a ROCE of 10.94% and ROE of 10.60%, MISTRAS demonstrates solid returns on capital and equity, reinforcing its attractiveness as an investment. Despite recent underperformance compared to the S&P 500 year-to-date, where MISTRAS has declined by 15.23% against a 2.44% increase in the index, the overall valuation metrics suggest that the stock presents a compelling buying opportunity.