Is Rollins, Inc. overvalued or undervalued?

As of 23 April 2025, the valuation grade for Rollins, Inc. has moved from very expensive to expensive, indicating a slight improvement in perceived value but still suggesting that the stock is not a bargain. The company is currently considered overvalued based on its high valuation ratios, including a P/E ratio of 59, a Price to Book Value of 20.65, and an EV to EBITDA of 36.29.
In comparison to peers, Rollins, Inc. has a P/E ratio that is significantly higher than Service Corp. International's 21.34 and Planet Fitness, Inc.'s 47.59, highlighting its relative overvaluation. Additionally, the PEG ratio of 9.13 suggests that the stock is priced for growth that may not materialize, further reinforcing the overvaluation verdict. Despite recent stock performance showing a 23.26% year-to-date return compared to the S&P 500's 2.44%, the high valuation ratios indicate that investors should approach Rollins, Inc. with caution.