Is Tetra Tech, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Tetra Tech, Inc. has moved from expensive to very expensive, indicating a significant increase in perceived overvaluation. The company is currently considered overvalued based on its high valuation ratios, including a P/E ratio of 43, a Price to Book Value of 5.96, and an EV to EBITDA of 16.69. Compared to peers, Tetra Tech's P/E ratio is notably higher than that of TopBuild Corp. at 24.98, and its EV to EBITDA is also elevated compared to Fluor Corp. at 13.39.
The company's stock performance has been underwhelming, with a year-to-date return of -17.95%, significantly lagging behind the S&P 500's return of 13.30% during the same period. This stark contrast reinforces the view that Tetra Tech is overvalued in the current market environment.