Is Lamar Advertising Co. overvalued or undervalued?

As of 20 February 2025, the valuation grade for Lamar Advertising Co. has moved from expensive to very expensive, indicating a significant shift in its perceived value. The company is currently considered overvalued. Key ratios include a P/E ratio of 30, a Price to Book Value of 12.14, and an EV to EBITDA of 12.52, all of which suggest that the stock is trading at a premium compared to its earnings and asset values.
In comparison to its peers, Lamar Advertising's P/E ratio of 30 is notably higher than Camden Property Trust's 109.65 and Healthpeak Properties, Inc.'s 37.62, which further emphasizes its overvaluation. Additionally, while Lamar has a strong ROCE of 53.08% and ROE of 41.04%, these metrics do not sufficiently justify the high valuation in the context of its peers. Despite a recent stock return of 1.25% over the past week, which outperformed the S&P 500's -0.13%, the overall valuation still reflects a premium that may not be sustainable in the long term.