Is Genuine Parts Co. overvalued or undervalued?

As of 7 July 2025, the valuation grade for Genuine Parts Co. has moved from fair to expensive. The company appears to be overvalued based on its current metrics. Key ratios include a P/E ratio of 18, a Price to Book Value of 3.91, and an EV to EBITDA of 11.76. In comparison, peers such as Beacon Roofing Supply, Inc. have a higher P/E ratio of 20.51 and a lower EV to EBITDA of 12.17, indicating that Genuine Parts Co. is trading at a premium relative to its industry.
The stock has shown mixed performance against the S&P 500, with a year-to-date return of 18.11% compared to the index's 12.22%, but it has underperformed over longer periods, particularly in the 3-year and 5-year comparisons. This suggests that while there may be short-term gains, the overall valuation does not justify the current price level.