Is Genuine Parts Co. overvalued or undervalued?

As of 23 May 2025, the valuation grade for Genuine Parts Co. has moved from very expensive to expensive, indicating a slight improvement in perceived value. Despite this change, the company is still considered overvalued. The P/E ratio stands at 18, which is lower than the peer average of approximately 16.70, but still suggests that the stock may not be a bargain. Additionally, the EV to EBITDA ratio of 11.76 is also higher than some peers, such as WESCO International, which has an EV to EBITDA of 11.04, reinforcing the notion of overvaluation.
In comparison to its peers, Genuine Parts Co. exhibits a higher Price to Book Value of 3.91 and a lower dividend yield of 4.09%, which may not be attractive when considering alternatives like Pool Corp., which is categorized as very expensive with a P/E ratio of 26.38. Furthermore, the company's recent stock performance has lagged behind the S&P 500, with a 1-year return of -14.24% compared to the index's 10.26%, further suggesting that Genuine Parts Co. may not be the best investment at its current valuation.