Is APi Group Corp. overvalued or undervalued?

As of 31 January 2025, the valuation grade for APi Group Corp. has moved from expensive to very expensive. The company is currently overvalued, with a P/E ratio of 64, significantly higher than its peers such as EMCOR Group, Inc. at 23.87 and Comfort Systems USA, Inc. at 30.39. Other notable ratios include an EV to EBITDA of 20.32 and a PEG ratio of 4.06, both indicating a premium valuation compared to the industry.
In comparison to its peers, APi Group Corp. stands out with its high valuation metrics, reflecting a market sentiment that may not be sustainable. The company's return performance has been strong, with a year-to-date return of 41.34%, significantly outpacing the S&P 500's 2.44% during the same period. However, given the elevated valuation ratios, it suggests that the stock may not provide adequate returns moving forward, reinforcing the conclusion that it is overvalued.