Is ABM Industries, Inc. overvalued or undervalued?

As of 21 November 2025, the valuation grade for ABM Industries, Inc. has moved from very expensive to expensive, indicating a shift in perception regarding its valuation. The company appears to be overvalued given its P/E ratio of 12, which is lower than the peer average of 15.99 for companies like Air Lease Corp. and FTI Consulting, Inc. with P/E ratios of 16.14 and 19.59, respectively. Additionally, ABM's EV to EBITDA ratio of 8.33 is also less favorable compared to its peers, suggesting it may not be justifying its current price.
The stock has underperformed relative to the S&P 500, with a year-to-date return of -17.55% compared to the index's 12.26%. This trend reinforces the notion that ABM Industries, Inc. is overvalued in the current market context, especially when considering its high PEG ratio of 7.98, which further indicates that the stock may not be a compelling investment at this time.