Is Hertz Global Holdings, Inc. overvalued or undervalued?

As of 1 August 2024, Hertz Global Holdings, Inc. has moved from a fair to a risky valuation grade. The company is currently considered overvalued, reflected by its negative price-to-book value of -7.15 and an EV to EBIT ratio of -30.79. Additionally, the EV to EBITDA ratio stands at 5.62, which is relatively high compared to its peers.
In comparison to industry peers, Hertz's valuation metrics are concerning. For instance, Air Lease Corp. has a P/E ratio of 14.59 and an EV to EBITDA of 10.86, while Ryder System, Inc. shows a P/E of 11.77 and an EV to EBITDA of 4.89, indicating that Hertz is lagging significantly in financial performance. Despite a strong year-to-date stock return of 75.41%, this is juxtaposed against a backdrop of negative returns over the past three years, suggesting that the current valuation may not be sustainable.