Is GATX Corp. overvalued or undervalued?

As of 23 April 2025, GATX Corp. has moved from a valuation grade of very expensive to expensive, indicating a shift in perception regarding its market value. The company is currently considered overvalued. Key ratios include a P/E ratio of 38, a Price to Book Value of 4.21, and an EV to EBITDA of 20.33, which are significantly higher than industry averages, suggesting that the stock is priced at a premium.
In comparison to its peers, GATX Corp. has a P/E ratio of 36.50 and an EV to EBITDA of 19.92, which are still elevated relative to the industry norms. Notably, the PEG ratio stands at 4.36, further reinforcing the notion of overvaluation. Despite recent stock performance showing a 1-year return of 17.23% compared to the S&P 500's 10.26%, the high valuation ratios indicate that GATX Corp. may not sustain this growth, making it a less attractive investment at current levels.