Is Aptiv Plc overvalued or undervalued?

As of 6 June 2025, Aptiv Plc's valuation grade has moved from very expensive to expensive, indicating a slight improvement in its perceived value. Based on the analysis, the company appears to be overvalued. The P/E ratio stands at 7, significantly lower than peers such as Autoliv, Inc. with a P/E of 15.26 and Allison Transmission Holdings, Inc. at 10.51, suggesting that Aptiv's earnings are not being valued as highly as those of its competitors. Additionally, the EV to EBITDA ratio is 6.78, which is more favorable than Autoliv's 8.36, yet still reflects a premium compared to the industry average.
In terms of financial performance, Aptiv boasts a ROE of 23.83% and a ROCE of 14.49%, which are commendable figures. However, the overall market sentiment and recent stock performance, with a 1-year return of -11.57% compared to the S&P 500's 10.26%, further reinforce the notion that Aptiv may not be a compelling investment at its current price of 66.51. Overall, the combination of its valuation metrics and peer comparisons suggests that Aptiv Plc is overvalued in the current market environment.