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 is currently overvalued based on its high valuation ratios, including a P/E ratio of 720, an EV to EBITDA of 24.56, and a Price to Book Value of 2.60. In comparison, peers such as ATI, Inc. have a P/E of 24.85 and Moog, Inc. has an EV to EBITDA of 22.02, highlighting AAR Corp.'s significant premium.
Despite its overvaluation, AAR Corp. has shown strong performance, particularly in the year-to-date return of 30.01%, which outpaces the S&P 500's 12.26% return. However, over the longer term, the company's 10-year return of 167.08% falls short of the S&P 500's 216.06%, indicating potential concerns about sustainability at its current valuation levels.