Is HEICO Corp. overvalued or undervalued?

As of 10 October 2025, HEICO Corp. has moved from a fair to an expensive valuation grade. The company is currently overvalued, as indicated by its P/E ratio of 55, which is significantly higher than the industry average, and an EV to EBITDA ratio of 34.64. Additionally, the PEG ratio stands at 1.58, suggesting that the stock may not be justified at its current price given its growth prospects.
In comparison to peers, Teledyne Technologies, Inc. has a fair valuation with a P/E of 29.71, while Leidos Holdings, Inc. is considered attractive with a P/E of 16.13. This highlights HEICO's premium valuation relative to its competitors. Despite a strong year-to-date return of 29.06%, which outperformed the S&P 500's 11.41%, the company's recent weekly and monthly declines of -4.31% and -3.07% respectively suggest that the market may be reassessing its lofty valuation.