Is ABM Industries, Inc. overvalued or undervalued?

As of 31 January 2025, the valuation grade for ABM Industries, Inc. has moved from expensive to very expensive, indicating a significant shift in its market perception. The company is currently considered overvalued. Key ratios include a P/E ratio of 12, a Price to Book Value of 1.63, and an EV to EBITDA of 8.33, which are not competitive compared to its peers. For instance, ExlService Holdings, Inc. has a much higher P/E of 37.17 and an EV to EBITDA of 23.70, while Air Lease Corp. shows a more reasonable P/E of 14.59.
In comparison to the broader market, ABM Industries has underperformed, with a year-to-date return of -12.70% versus the S&P 500's 2.44%. This trend reinforces the notion that the stock is overvalued, especially considering its high PEG ratio of 7.98 and a dividend yield that appears unsustainable at 223.48%. Overall, the financial metrics and peer comparisons suggest that ABM Industries is not a favorable investment at its current valuation.