Is Tetra Tech, Inc. overvalued or undervalued?

As of 30 June 2025, Tetra Tech, Inc. has moved from an expensive to a very expensive valuation grade. The company is overvalued, as indicated by its high P/E ratio of 43, a price-to-book value of 5.96, and an EV to EBITDA ratio of 16.69, which significantly exceeds the industry norms. In comparison, peers like TopBuild Corp. have a more reasonable P/E of 24.98 and EV to EBITDA of 15.94, while Fluor Corp. stands out with a very attractive valuation at a P/E of 1.61.
The stock has underperformed relative to the S&P 500, particularly over the past year, where it saw a decline of 20.15% compared to the index's gain of 17.14%. This underperformance, coupled with the high valuation ratios, reinforces the conclusion that Tetra Tech, Inc. is currently overvalued.