Is RBC Bearings, Inc. overvalued or undervalued?

As of 30 June 2025, the valuation grade for RBC Bearings, Inc. has moved from fair to very expensive, indicating a significant shift in its perceived value. The company appears to be overvalued, with a P/E ratio of 50, an EV to EBITDA of 26.77, and a PEG ratio of 6.11, all of which are considerably higher than those of its peers. For instance, Mueller Industries, Inc. has a P/E of 18.16 and an EV to EBITDA of 13.35, showcasing a stark contrast in valuation metrics.
In terms of returns, RBC Bearings has performed well year-to-date with a gain of 28.61%, significantly outpacing the S&P 500's return of 12.22% in the same period. However, over longer time frames, such as the 3-year and 10-year returns, RBC's performance lags behind the S&P 500, which raises concerns about its sustainability at current valuation levels. Overall, the high valuation ratios and the recent grade change suggest that RBC Bearings, Inc. is overvalued.