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 a shift towards overvaluation. The company is currently considered overvalued based on its high P/E ratio of 34, a Price to Book Value of 3.37, and an EV to EBITDA of 18.14, all of which exceed typical industry benchmarks. In comparison, Paymentus Holdings, Inc. has a significantly higher P/E of 79.78, while Universal Technical Institute, Inc. shows a more favorable P/E of 23.75, highlighting the relative expense of Willdan Group.
Despite its overvaluation, Willdan Group has demonstrated impressive stock performance, with a year-to-date return of 168.76% compared to the S&P 500's 15.47%, and a three-year return of 699.14% versus 78.85% for the index. This strong performance may reflect investor confidence, yet the elevated valuation metrics suggest caution moving forward.