Is Quanta Services, Inc. overvalued or undervalued?

As of 1 May 2025, Quanta Services, Inc. has moved from expensive to very expensive in its valuation grade. The company is currently overvalued, as indicated by its high P/E ratio of 64, which significantly exceeds the industry average. Other notable ratios include a Price to Book Value of 8.44 and an EV to EBITDA of 30.30, both of which further suggest that the stock is trading at a premium compared to its intrinsic value.
In comparison to peers, Quanta Services has a P/E ratio of 63.41 and an EV to EBITDA of 30.08, which are also elevated. This places it in a challenging position relative to its industry, where the average valuation metrics are more favorable. The company's recent stock performance has outpaced the S&P 500, with a year-to-date return of 15.73% compared to the S&P 500's 2.44%, but this does not mitigate the concerns regarding its current overvaluation.