Is Pure Cycle Corp. overvalued or undervalued?

As of 7 July 2025, the valuation grade for Pure Cycle Corp. has moved from fair to attractive, indicating a positive shift in its perceived value. The company appears to be undervalued, supported by a P/E ratio of 17, a PEG ratio of 0.15, and an EV to EBITDA ratio of 17.68, all of which suggest that the stock is trading at a discount relative to its growth prospects and earnings potential.
In comparison to peers, Pure Cycle Corp. has a lower P/E ratio than Aris Water Solutions, Inc. at 21.89 and Consolidated Water Co. Ltd. at 30.71, highlighting its relative attractiveness in the market. Additionally, while the company has experienced a year-to-date return of -9.31%, it has outperformed the S&P 500 over the past week and month, with returns of 1.95% and 14.20%, respectively, reinforcing its potential for recovery and growth.