Is AAR Corp. overvalued or undervalued?

As of 24 October 2025, AAR Corp. moved from very expensive to fair, indicating a shift in valuation perspective. The company appears to be fairly valued based on its current metrics, with a P/E ratio of 720, a Price to Book Value of 2.60, and an EV to EBITDA of 18.20. In comparison, peers such as ATI, Inc. have a P/E of 24.85 and Moog, Inc. has a P/E of 40.73, highlighting that AAR Corp. is significantly higher in terms of P/E, suggesting potential overvaluation relative to its peers.
The stock has performed well recently, with a year-to-date return of 41.12% compared to the S&P 500's 15.47%, indicating strong relative performance. However, the high P/E ratio suggests that the market may have high expectations for future growth, which could lead to volatility if those expectations are not met. Overall, while the valuation grade has improved, the high P/E ratio indicates that AAR Corp. may still be overvalued compared to its industry peers.