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, indicating a shift in its perceived value. Based on the current metrics, the company appears to be fairly valued. Key ratios include a P/E ratio of 17, an EV to EBITDA of 17.68, and a PEG ratio of 0.15, suggesting that the stock may be priced appropriately relative to its growth prospects.
In comparison to peers, Artesian Resources Corp. has a lower P/E ratio of 15.08, while Aris Water Solutions, Inc. is considered expensive with a P/E of 21.89. This positions Pure Cycle Corp. in a competitive light within the industry, as it offers a more attractive valuation compared to some of its peers. Although return data is not available for a direct comparison, the overall market sentiment may influence the stock's performance relative to broader indices like the S&P 500.