Is GATX Corp. overvalued or undervalued?

Oct 21 2025 12:01 PM IST
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As of October 17, 2025, GATX Corp. is considered overvalued with a P/E ratio of 38 and other high valuation metrics, despite a strong 1-year return of 27.99%.
As of 17 October 2025, GATX Corp. has moved from a very attractive valuation grade to an expensive one, indicating a shift towards overvaluation. The company appears overvalued based on its 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 peers like Federal Agricultural Mortgage Corp. with a P/E of 10.26 and Banco Latinoamericano de Comercio Exterior SA at 7.62.

Despite a strong performance with a 1-year return of 27.99% compared to the S&P 500's 14.08%, the elevated valuation ratios suggest that GATX Corp. may not sustain this growth relative to its current price. Overall, the metrics indicate that GATX Corp. is overvalued in the current market.
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