Is Aptiv Plc overvalued or undervalued?

As of 12 August 2025, Aptiv Plc's valuation grade has moved from fair to expensive, indicating a shift towards overvaluation. The company appears overvalued based on its P/E ratio of 7, which is below the industry average, and an EV to EBITDA ratio of 6.78, suggesting that the market may be pricing it too high relative to its earnings potential. Additionally, the Price to Book Value stands at 1.71, further supporting the notion of overvaluation when compared to its peers.
In comparison to its peers, Aptiv's P/E ratio of 8.45 is higher than its own, yet it still falls short of the industry average, indicating potential pricing discrepancies. Notably, while Aptiv has outperformed the S&P 500 in the short term with a 1-month return of 12.76% versus 2.33%, its long-term performance has lagged significantly, with a 5-year return of -4.02% compared to the S&P's 96.61%. This divergence suggests that despite recent gains, the overall valuation may not be justified in the long run.