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 high valuation ratios, including a P/E ratio of 49, an EV to EBITDA of 24.10, and a Price to Book Value of 2.83. In comparison, peers such as IES Holdings, Inc. and Primoris Services Corp. have P/E ratios of 27.82 and 25.49, respectively, indicating that VSE Corp. is trading at a significant premium relative to its industry.
Despite this overvaluation, VSE Corp. has delivered impressive returns, with a year-to-date return of 67.68% compared to the S&P 500's 13.30%, and a remarkable 406.87% return over the past five years, outpacing the S&P 500's 91.29%. However, the high valuation ratios suggest that the stock may not sustain such performance in the long term.