Is WEX, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for WEX, Inc. has moved from very attractive to attractive, indicating a shift in perception. The company appears to be overvalued based on its current valuation ratios, including a P/E ratio of 20, a Price to Book Value of 7.79, and an EV to EBITDA of 6.75. In comparison, peers such as ICON plc and Booz Allen Hamilton Holding Corp. have lower P/E ratios of 14.64 and 15.81, respectively, suggesting that WEX, Inc. is priced higher relative to its earnings potential.
Despite its strong ROCE of 52.70% and ROE of 39.77%, the recent stock performance has been underwhelming, with a year-to-date return of -14.15% compared to the S&P 500's return of 13.30%. This underperformance, along with the elevated valuation ratios, reinforces the conclusion that WEX, Inc. is currently overvalued.