Is RBC Bearings, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for RBC Bearings, Inc. moved from expensive to very expensive, indicating a significant increase in perceived overvaluation. The company is currently overvalued, with a P/E ratio of 50, a Price to Book Value of 4.07, and an EV to EBITDA ratio of 26.77, all of which are considerably higher than industry norms. In comparison, peers such as Mueller Industries, Inc. exhibit a much more attractive P/E ratio of 18.16 and an EV to EBITDA of 13.35, highlighting the stark contrast in valuation metrics.
Despite a strong year-to-date return of 24.64%, which outperformed the S&P 500's 13.30%, the long-term performance shows RBC Bearings lagging behind with a 3-year return of 70.20% compared to the S&P 500's 81.19%. This suggests that while the stock has performed well recently, its high valuation ratios indicate it may not sustain this performance relative to its peers.