Is GATX Corp. overvalued or undervalued?

Sep 20 2025 05:26 PM IST
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As of June 30, 2025, GATX Corp. is considered overvalued with a P/E ratio of 38 and higher valuation metrics compared to peers, despite a strong 1-year return of 25.65%.
As of 30 June 2025, GATX Corp. has moved from an attractive to an expensive valuation grade. The company appears overvalued based on its current metrics, with a P/E ratio of 38, a Price to Book Value of 4.21, and an EV to EBITDA of 20.33. In comparison to peers, GATX Corp.'s P/E ratio is significantly higher than Federal Agricultural Mortgage Corp.'s 10.26 and Banco Latinoamericano de Comercio Exterior SA's 7.62, indicating a premium valuation relative to these companies.

Despite GATX Corp.'s strong performance, with a 1-year return of 25.65% compared to the S&P 500's 17.14%, the elevated valuation ratios suggest that the stock may not be a prudent investment at its current price level.
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