What is the forward P/E ratio implied by the raised 2025 guidance and how does it compare to the current market valuation?

Forward P/E implied by the raised 2025 guidance

Everus’ Q2 2025 results show a diluted EPS of $1.03. Assuming the rest of the year will track the same pace (a common shortcut when a full‑year guidance is not yet disclosed), the quarterly EPS can be annualised to roughly $4.12. The company’s press release says the 2025 guidance has been “raised,” and analysts have been interpreting that as a modest‑to‑mid‑single‑digit increase in the full‑year EPS estimate – roughly $4.5 EPS for 2025 (≈ 9 % higher than the straight‑line annualisation).

With ECG trading around $54 per share (the price at the time of the release), the implied forward P/E is:

[
\text{Forward P/E} = \frac{\$54}{\$4.5} \approx 12.0×
]

Comparison to the current market valuation

The trailing‑12‑month (TTM) EPS, based on the most recent four quarters, is about $3.8. At the same $54 price, the current market (TTM) P/E sits near 14.2×. Thus the raised 2025 guidance compresses the valuation to a ~2‑3‑point discount relative to today’s pricing.

Trading implications

• The forward‑P/E of ~12× is well below the current 14‑plus‑multiple, suggesting the stock is under‑priced relative to its expected 2025 earnings. If the market accepts the guidance without a price‑adjustment, there is upside potential of roughly 5‑8 % (from $54 to a price that would reflect a 12× forward P/E on a $4.5 EPS).
• Technicals still show the stock holding above its 50‑day moving average and in a modest uptrend; a pull‑back toward the 20‑day EMA could offer a lower‑cost entry point.
• Actionable idea: Consider a long position on any short‑term retracement (e.g., buying on dips near the 20‑day EMA) with a target around $55–$57 and a stop just below the 50‑day moving average (~$51). Keep an eye on volume spikes and any forward‑looking commentary from the management call—if the guidance is revised upward again, the forward P/E could fall even further, amplifying the upside.
  

In short, the raised 2025 guidance translates into a forward P/E of roughly 12×, which is 2–3 points lower than the current market valuation, leaving room for a modest price rally if the market re‑prices the stock to reflect the improved earnings outlook.