Is RBC Bearings, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for RBC Bearings, Inc. has moved from expensive to very expensive, indicating a significant increase in perceived overvaluation. The company is considered overvalued based on its high valuation ratios, including a P/E ratio of 50, an EV to EBITDA of 26.77, and a PEG ratio of 6.11. In comparison, peers such as Mueller Industries, Inc. exhibit a much lower P/E ratio of 18.16 and an EV to EBITDA of 13.35, highlighting the disparity in valuation within the industry.
Despite a strong year-to-date return of 24.64% compared to the S&P 500's 13.30%, RBC Bearings has underperformed over longer periods, with a 3-year return of 70.20% versus the S&P 500's 81.19%. This suggests that while the stock has performed well recently, its high valuation ratios and the comparison to peers indicate it may not be a sustainable investment at current levels.