Is AAR Corp. overvalued or undervalued?

As of 21 November 2025, AAR Corp. has moved from a fair to a very expensive valuation grade. The company appears overvalued, 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 more reasonable P/E of 24.85 and Moog, Inc. stands at a P/E of 40.73, indicating that AAR Corp. is significantly higher than its industry counterparts.
Despite a strong year-to-date return of 26.78% compared to the S&P 500's 12.26%, AAR Corp.'s long-term performance shows a 10-year return of 192.84%, which lags behind the S&P 500's 216.06%. This suggests that while the company has performed well recently, its current valuation may not be justified given the high multiples relative to its peers.