Is Copart, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Copart, Inc. has moved from very attractive to attractive, indicating a shift in perceived value. The company is currently considered overvalued based on its valuation ratios, including a P/E ratio of 33, a Price to Book Value of 5.52, and an EV to EBITDA of 23.76. In comparison to peers, Copart's P/E ratio is higher than Visa, Inc. at 30.36 and significantly higher than PayPal Holdings, Inc. at 15.30, suggesting that it may be priced at a premium relative to its industry counterparts.
Despite Copart's strong ROCE of 37.22% and ROE of 16.80%, the company's recent stock performance has lagged behind the S&P 500, with a year-to-date return of -22.74% compared to the index's 13.30%. This underperformance, coupled with the elevated valuation ratios, reinforces the conclusion that Copart, Inc. is overvalued in the current market context.