Is Herc Holdings, Inc. overvalued or undervalued?

As of 22 April 2025, the valuation grade for Herc Holdings, Inc. has moved from expensive to very expensive, indicating a significant shift in its market perception. The company is currently deemed overvalued. Key ratios include a P/E ratio of 23, a Price to Book Value of 3.41, and an EV to EBITDA of 5.59, which are notably higher than its peers. For instance, Air Lease Corp. has a P/E of 14.59, while Ryder System, Inc. boasts an attractive P/E of 11.77, highlighting the disparity in valuation.
Herc Holdings, Inc. also shows a high dividend yield of 124.56% and a ROE of 14.87%, but these figures do not compensate for its elevated valuation metrics. The company's recent stock performance has been underwhelming, with a year-to-date return of -38.16%, contrasting sharply with the S&P 500's gain of 2.44% during the same period. This further reinforces the notion that the stock is overvalued in the current market landscape.