Is Group 1 Automotive, Inc. overvalued or undervalued?

As of 30 June 2025, the valuation grade for Group 1 Automotive, Inc. moved from expensive to attractive, indicating a shift towards a more favorable assessment. The company appears undervalued based on its current metrics, with a P/E ratio of 16, an EV to EBITDA of 12.67, and a Price to Book Value of 2.85. In comparison to peers, Dick's Sporting Goods, Inc. has a P/E of 30.66, while Lithia Motors, Inc. shows a more favorable EV to EBITDA of 10.97, highlighting Group 1's relative attractiveness.
Despite a recent decline of 5.59% over the past week, the company has outperformed the S&P 500 over the longer term, with a remarkable 412.18% return over the past five years compared to the index's 96.61%. This strong performance reinforces the notion that Group 1 Automotive, Inc. is currently undervalued in the market.