Is Pure Cycle Corp. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Pure Cycle Corp. has moved from attractive to fair. Based on the current metrics, the company appears to be fairly valued. The P/E ratio stands at 17, while the EV to EBITDA ratio is 17.68, and the PEG ratio is notably low at 0.15, indicating potential undervaluation relative to growth expectations.
In comparison to peers, Artesian Resources Corp. has a P/E ratio of 15.08, suggesting it is fairly valued, while Aris Water Solutions, Inc. is considered expensive with a P/E of 21.89. Pure Cycle Corp.'s recent stock performance has lagged behind the S&P 500, with a year-to-date return of -13.49% compared to the S&P 500's 13.30%, reinforcing the notion that the stock may be facing challenges in the current market environment.