Is AutoNation, Inc. overvalued or undervalued?

As of 27 October 2022, AutoNation, Inc. has moved from a very attractive to an attractive valuation grade. The company is currently fairly valued based on its financial metrics. Key ratios include a P/E ratio of 16, an EV to EBITDA of 15.04, and a ROE of 29.16%.
In comparison to peers, AutoNation's P/E ratio of 15.96 is lower than Williams-Sonoma, Inc. at 17.27, but higher than Penske Automotive Group, Inc. at 11.76. The EV to EBITDA ratio also positions AutoNation competitively against its peers, with Williams-Sonoma showing a lower ratio of 11.12. Notably, AutoNation's stock has outperformed the S&P 500 with a year-to-date return of 16.72% compared to the S&P 500's 2.44%.