Is AAR Corp. overvalued or undervalued?

As of 21 November 2025, AAR Corp. has moved from fair to very expensive in its valuation grade. The company is currently overvalued, with a P/E ratio of 720, a price-to-book value of 2.60, and an EV to EBITDA ratio of 18.20. In comparison, peers such as ATI, Inc. have a fair P/E ratio of 24.85, while Moog, Inc. also maintains a fair P/E of 40.73, highlighting AAR Corp.'s significant premium.
Despite its overvaluation, AAR Corp. has shown strong returns, outperforming the S&P 500 year-to-date with a return of 26.78% compared to the index's 12.26%. However, over a 10-year period, AAR Corp. has underperformed the S&P 500, with both companies showing returns of 192.84% and 216.06%, respectively.