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, an EV to EBITDA ratio of 8.33, and a PEG ratio of 7.98, all suggesting that the stock is trading at a premium compared to its earnings growth potential.
In comparison to its peers, ABM Industries has a higher P/E ratio than Air Lease Corp. at 16.14 and FTI Consulting, Inc. at 19.59, both of which are categorized as expensive. Additionally, the company's return performance has lagged behind the S&P 500, with a year-to-date return of -11.96% compared to the index's 13.30%, and a one-year return of -17.06% versus 14.08% for the S&P 500. This underperformance reinforces the notion that ABM Industries is overvalued in the current market environment.