Is GE Aerospace overvalued or undervalued?

As of 14 August 2025, the valuation grade for GE Aerospace has moved from expensive to very expensive, indicating a significant increase in perceived overvaluation. The company is currently considered overvalued, with a P/E ratio of 134, a Price to Book Value of 53.89, and an EV to EBITDA of 124.29, all of which are substantially higher than industry peers. For instance, Lam Research Corp. has a P/E of 57.14 and an EV to EBITDA of 48.40, both reflecting a more attractive valuation.
In terms of recent performance, GE Aerospace has outperformed the S&P 500, with a year-to-date return of 78.12% compared to the index's 12.22%. This strong performance, however, does not mitigate the high valuation ratios, which suggest that the stock may be priced for perfection in a market that could be prone to corrections.