Is Penske Automotive Group, Inc. overvalued or undervalued?

As of 7 July 2025, the valuation grade for Penske Automotive Group, Inc. has moved from expensive to attractive, indicating a shift towards a more favorable assessment. The company appears to be undervalued, supported by a P/E ratio of 11, a Price to Book Value of 2.02, and an EV to EBITDA of 13.00. In comparison, CarMax, Inc. has a higher P/E ratio of 16.49 and an EV to EBITDA of 116.16, suggesting that Penske is trading at a discount relative to its peer.
Despite recent short-term underperformance, with a 1-week return of -3.70% compared to the S&P 500's 1.05%, Penske Automotive has delivered a solid year-to-date return of 17.13%, outpacing the S&P 500's 12.22%. Overall, the combination of attractive valuation ratios and strong long-term performance indicates that Penske Automotive Group, Inc. is currently undervalued.