Is GE Aerospace overvalued or undervalued?

As of 24 October 2025, the valuation grade for GE Aerospace moved from very expensive to expensive, indicating a slight improvement but still suggesting overvaluation. The company appears overvalued based on its high P/E ratio of 134, a Price to Book Value of 53.89, and an EV to EBITDA of 124.29, all significantly above industry norms. In comparison, Lam Research Corp. has a P/E of 57.14 and Applied Materials, Inc. has a P/E of 45.37, both indicating more attractive valuations within the same sector.
Despite its strong performance, with a year-to-date return of 82.19% compared to the S&P 500's 15.47%, the high valuation ratios suggest that GE Aerospace may not sustain such growth in the long term. Overall, the company's current metrics and peer comparisons support the conclusion that it is overvalued.