Is CBRE Group, Inc. overvalued or undervalued?

As of 13 February 2025, the valuation grade for CBRE Group, Inc. has moved from expensive to very expensive, indicating a significant increase in perceived overvaluation. The company is currently assessed as overvalued, with a P/E ratio of 38, a Price to Book Value of 4.63, and an EV to EBITDA ratio of 17.98. These ratios suggest that the stock is trading at a premium compared to its earnings and book value.
In comparison to its peers, CBRE Group, Inc. has a higher P/E ratio of 39.23 and a PEG ratio of 13.54, which further emphasizes its overvaluation relative to the industry standards. Notably, the company's return over the past year has outperformed the S&P 500, with a stock return of 53.35% compared to the index's 10.26%. This strong performance may have contributed to the inflated valuation metrics, but it does not mitigate the current overvaluation status.