Is MISTRAS Group, Inc. overvalued or undervalued?

As of 7 August 2025, the valuation grade for MISTRAS Group, Inc. moved from fair to expensive, indicating a shift towards overvaluation. The company appears to be overvalued based on its P/E ratio of 11, which is significantly lower than its peer average of 15.68, and an EV to EBITDA ratio of 5.60 compared to peers like Bowman Consulting Group Ltd. with an EV to EBITDA of 22.73. Additionally, the PEG ratio stands at 0.30, suggesting that the stock may not be justified at its current price given its growth prospects.
In terms of peer comparison, MISTRAS Group's P/E ratio is notably lower than that of Bowman Consulting Group Ltd., which is at 81.27, and Orion Group Holdings, Inc. at 28.58, further supporting the conclusion of overvaluation. While MISTRAS Group has shown strong returns over the longer term, with a 3-year return of 106.08% compared to the S&P 500's 70.41%, its recent 1-year return of -7.87% versus the S&P 500's 17.14% highlights potential concerns about its current valuation relative to market performance.