Is NV5 Global, Inc. overvalued or undervalued?

As of 7 July 2025, the valuation grade for NV5 Global, Inc. has moved from expensive to very expensive, indicating a significant increase in perceived overvaluation. The company is currently considered overvalued based on its high P/E ratio of 47, an EV to EBIT of 35.34, and an EV to EBITDA of 14.26. In comparison, peers such as Sterling Infrastructure, Inc. and Dycom Industries, Inc. have P/E ratios of 28.27 and 28.01, respectively, highlighting a stark contrast in valuation metrics.
The company's return performance has been mixed; while it outperformed the S&P 500 with a year-to-date return of 19.75% compared to 12.22%, it has underperformed over longer periods, including a 5-year return of 49.16% versus the S&P 500's 96.61%. This suggests that despite recent gains, NV5 Global, Inc. may not be a compelling investment given its elevated valuation ratios relative to its peers.