Is ABM Industries, Inc. overvalued or undervalued?

As of 7 November 2025, the valuation grade for ABM Industries, Inc. has moved from very expensive to expensive, indicating a slight improvement in perceived value. Based on the current metrics, the company appears to be overvalued. The P/E ratio stands at 12, while the industry average is significantly higher, suggesting that the stock may not be priced appropriately relative to its peers. Additionally, the EV to EBITDA ratio is 8.33, which is lower than the peer average of 10.09 for similar companies, further supporting the overvaluation assessment.
In comparison to its peers, Air Lease Corp. has a P/E ratio of 16.14, and ExlService Holdings, Inc. shows a much higher P/E of 31.10, highlighting that ABM Industries is lagging behind in valuation metrics. Furthermore, the company has experienced negative returns across multiple periods, with a year-to-date return of -18.03% compared to a positive 14.40% for the S&P 500, and a one-year return of -26.35% against the S&P 500's 12.65%. This performance reinforces the notion that ABM Industries, Inc. is currently overvalued.