Is ABM Industries, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for ABM Industries, Inc. has moved from attractive to very expensive, indicating a shift towards overvaluation. The company appears overvalued based on its current metrics, with a P/E ratio of 12, a Price to Book Value of 1.63, and an EV to EBITDA of 8.33, which are relatively high compared to its peers. For instance, Air Lease Corp. has a P/E of 16.14 and ExlService Holdings, Inc. shows a significantly higher P/E of 31.10, suggesting that ABM's valuation is not justified when compared to these companies.
Additionally, ABM's recent stock performance has lagged behind the S&P 500, with a year-to-date return of -11.96% compared to the S&P 500's 13.30%, and a one-year return of -17.06% versus the S&P 500's 14.08%. This underperformance reinforces the notion that ABM Industries, Inc. is overvalued in the current market environment.