Is Iron Mountain, Inc. overvalued or undervalued?

As of 1 August 2024, the valuation grade for Iron Mountain, Inc. has moved from very expensive to risky. The company appears to be overvalued given its high P/E ratio of 108, which significantly exceeds the industry average, and a negative price to book value of -43.17. Additionally, the EV to EBIT ratio stands at 24.50, indicating a premium valuation relative to its earnings potential.
In comparison to its peer, Invitation Homes, Inc., which has a P/E ratio of 42.08 and an EV to EBITDA of 13.99, Iron Mountain's metrics suggest it is not justified at its current price of 103.05. The company's recent stock performance has outpaced the S&P 500 over the past year, returning 15.97% compared to the index's 10.26%, but this does not mitigate the concerns raised by its valuation ratios. Overall, Iron Mountain, Inc. is considered overvalued based on the current financial metrics and peer comparisons.