Is Iron Mountain, Inc. overvalued or undervalued?

As of 1 August 2024, the valuation grade for Iron Mountain, Inc. has moved from expensive to risky. The company appears to be overvalued, given its high P/E ratio of 108, a negative Price to Book Value of -43.17, and an EV to EBIT of 24.50. In comparison to peers, Iron Mountain's P/E of 127.46 is significantly higher than VICI Properties, Inc. at 12.89 and Extra Space Storage, Inc. at 31.82, indicating a substantial premium that may not be justified by its financial performance.
Despite a strong dividend yield of 277.27%, the company's negative return on capital employed and return on equity further highlight its financial challenges. Over the past year, Iron Mountain's stock has returned -15.05%, underperforming the S&P 500's return of 17.14%, which reinforces the notion that the stock may be overvalued in the current market environment.