Is Willdan Group, Inc. overvalued or undervalued?

As of 24 October 2025, the valuation grade for Willdan Group, Inc. has moved from fair to expensive, indicating that the stock is overvalued. The company exhibits a P/E ratio of 34, a Price to Book Value of 3.37, and an EV to EBITDA of 18.14, which are significantly higher than its peers such as Universal Technical Institute, Inc. with a P/E of 23.75 and Emerald Holding, Inc. with a P/E of 45.60.
In comparison to the S&P 500, Willdan Group has shown impressive returns, with a year-to-date return of 168.76% against the S&P 500's 15.47%, suggesting strong performance but also raising concerns about sustainability at current valuation levels. Overall, the combination of high valuation ratios and the recent grade change supports the conclusion that Willdan Group, Inc. is overvalued.