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 perceived value. The company is currently considered overvalued based on its valuation ratios, which include 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 P/E ratios of 14.64 and 15.81, respectively, suggesting that WEX, Inc. is trading at a premium relative to its industry counterparts.
The recent stock performance highlights a concerning trend, with WEX, Inc. experiencing a 1-year return of -29.52%, significantly underperforming the S&P 500's return of 14.08% in the same period. This underperformance, coupled with the elevated valuation ratios, reinforces the conclusion that WEX, Inc. is overvalued in the current market environment.