Is Hertz Global Holdings, Inc. overvalued or undervalued?

As of 1 August 2024, Hertz Global Holdings, Inc. has moved from an expensive to a risky valuation grade. The company is currently considered overvalued, particularly given its negative price-to-book value of -7.15 and an EV to EBIT ratio of -30.79, which indicates significant financial distress. Additionally, the EV to EBITDA ratio stands at 5.62, suggesting that the company is trading at a high multiple relative to its earnings before interest, taxes, depreciation, and amortization.
In comparison to peers, Ryder System, Inc. has a fair valuation with a P/E ratio of 14.15 and an EV to EBITDA of 5.17, while Avis Budget Group, Inc. is also classified as risky with a P/E of 40.36 and an EV to EBITDA of 4.53. The recent stock performance shows that Hertz has outperformed the S&P 500 significantly over the past year, returning 82.16% compared to the S&P 500's 17.14%, which may reflect short-term market sentiment rather than a sustainable valuation.