Is OPENLANE, Inc. overvalued or undervalued?

As of 8 May 2025, the valuation grade for OPENLANE, Inc. has moved from attractive to fair, indicating a shift in its perceived value. The company is currently fairly valued based on its financial metrics. The P/E ratio stands at 23, while the industry average P/E is approximately 21.56, suggesting that OPENLANE is slightly above its peers. Additionally, the EV to EBITDA ratio is 10.88, which is comparable to the peer average of 10.51, and the PEG ratio is a favorable 0.70, indicating potential for growth relative to its price.
In comparison with peers, OPENLANE's ROCE is 8.00% and ROE is 5.59%, which are lower than some competitors, suggesting that while it is performing adequately, there may be room for improvement. Notably, the company's stock has outperformed the S&P 500 over the past year with a return of 41.31% compared to the S&P 500's 10.26%, reinforcing its growth potential despite the current fair valuation. Overall, OPENLANE appears to be fairly valued in the current market context.