Is Verra Mobility Corp. overvalued or undervalued?

As of 27 February 2025, the valuation grade for Verra Mobility Corp. has moved from expensive to very expensive. The company is currently considered overvalued. Key ratios include a P/E ratio of 29, an EV to EBITDA of 13.75, and a ROE of 45.29%.
In comparison to peers, Verra Mobility Corp. has a higher P/E ratio than Corporacion America Airports SA, which stands at 20.86, and a similar PEG ratio of 0.57, indicating that while growth expectations may be favorable, the current valuation appears stretched. Additionally, despite recent stock performance showing a 1-week return of 0.99% against a slight decline in the S&P 500, the longer-term outlook reveals a 1-year decline of 10.03%, reinforcing the notion that the stock may not justify its current price levels.