Is GATX Corp. overvalued or undervalued?

As of 17 October 2025, the valuation grade for GATX Corp. has moved from very attractive to expensive, indicating a shift in its perceived value. Based on the current metrics, GATX appears to be overvalued. The P/E ratio stands at 38, significantly higher than its peer average of approximately 36.67, while the EV to EBITDA ratio is 20.33 compared to the industry average of 20.42. Additionally, the PEG ratio is notably high at 4.36, suggesting that the stock may not be justified by its growth prospects.
In comparison to its peers, Federal Agricultural Mortgage Corp. has a much lower P/E of 10.26 and a PEG ratio of 5.33, indicating a more attractive valuation relative to earnings growth. Banco Latinoamericano de Comercio Exterior SA also presents a compelling case with a P/E of 7.62, reinforcing the notion that GATX is priced at a premium. Over the past year, GATX has returned 27.99%, outperforming the S&P 500's 14.08%, but this strong performance does not mitigate the concerns regarding its current valuation.