Is Aramark overvalued or undervalued?

As of 11 August 2025, the valuation grade for Aramark has moved from expensive to very expensive, indicating a significant shift in its perceived value. Based on the current metrics, Aramark appears to be overvalued, with a P/E ratio of 34, a Price to Book Value of 3.99, and an EV to EBITDA of 14.38. In comparison, peers such as Texas Roadhouse, Inc. have a P/E of 24.79 and an EV to EBITDA of 14.80, while The Wendy's Co. shows a more attractive P/E of 21.98 and an EV to EBITDA of 12.79, highlighting Aramark's relative overvaluation.
Moreover, Aramark's recent stock performance has been underwhelming, with a year-to-date return of 1.15% compared to the S&P 500's 12.22%, and a one-year return of -0.89% versus the S&P 500's 17.14%. This underperformance further reinforces the notion that Aramark is currently overvalued in the market.