Is Sterling Infrastructure, Inc. overvalued or undervalued?

As of 19 September 2025, the valuation grade for Sterling Infrastructure, Inc. has moved from fair to expensive, indicating a shift towards overvaluation. The company is considered overvalued based on its P/E ratio of 22, which is lower than the peer average of approximately 28.27, and an EV to EBITDA of 21.23, which is also higher than the industry average. Additionally, the PEG ratio stands at a notably low 0.28, suggesting that the stock may not be priced appropriately relative to its growth potential.
In comparison to its peers, MasTec, Inc. has a P/E of 57.22, while TopBuild Corp. has a P/E of 24.98, further illustrating the relative valuation context. The company's recent stock performance has significantly outpaced the S&P 500, with a year-to-date return of 113.86% compared to the index's 13.31%, reinforcing the notion that the stock may be overvalued at its current price.