Is VSE Corp. overvalued or undervalued?

As of 17 October 2025, VSE Corp. has moved from a fair to a very expensive valuation grade. The company appears overvalued based on its current metrics, particularly with a P/E ratio of 49, significantly higher than peers like IES Holdings, Inc. at 27.82 and Primoris Services Corp. at 25.49. Additionally, VSE Corp.'s EV to EBITDA stands at 24.10, which is also above the industry average, indicating a premium valuation compared to its competitors.
In terms of returns, VSE Corp. has outperformed the S&P 500 with a year-to-date return of 67.68% compared to the S&P's 13.30%, and a three-year return of 270.66% versus 81.19% for the index. However, despite these impressive returns, the high valuation ratios suggest that the stock may not be a sustainable investment at its current price of 159.46.