Is ABM Industries, Inc. overvalued or undervalued?

As of 7 November 2025, the valuation grade for ABM Industries, Inc. moved from very expensive to expensive, indicating a slight improvement in its perceived value. The company appears to be overvalued based on its current metrics. The P/E ratio stands at 12, while the industry average is notably higher, suggesting that ABM is trading at a discount relative to its peers. Additionally, the EV to EBITDA ratio is 8.33, which is lower than the average of its competitors, further supporting the overvaluation stance.
In comparison to its peers, Air Lease Corp. has a P/E of 16.14 and ExlService Holdings, Inc. shows a significantly higher P/E of 31.10, highlighting that ABM's valuation does not align with the market trends in its sector. Furthermore, ABM's stock has underperformed against the S&P 500 across multiple periods, with a year-to-date return of -17.37% compared to the S&P 500's 14.40%, reinforcing the notion that the stock may not be a favorable investment at its current price.