Is VSE Corp. overvalued or undervalued?

As of 17 October 2025, VSE Corp. has moved from a fair valuation to a very expensive rating. The company appears overvalued, particularly when considering its P/E ratio of 49, which significantly exceeds the industry average, and an EV to EBITDA ratio of 24.10, which is also high compared to peers like IES Holdings, Inc. with a P/E of 27.82 and EV to EBITDA of 18.65. Additionally, the Price to Book Value stands at 2.83, indicating a premium over its book value.
In terms of performance, VSE Corp. has shown impressive returns, with a year-to-date return of 67.68% compared to the S&P 500's 13.30%, and a three-year return of 270.66% versus the S&P 500's 81.19%. However, despite these strong performance metrics, the high valuation ratios suggest that the stock may be priced for perfection, making it less attractive for new investors at this time.