Is Rollins, Inc. overvalued or undervalued?

As of 23 July 2025, the valuation grade for Rollins, Inc. has moved from expensive to very expensive, indicating a significant concern regarding its valuation. The company is currently overvalued, as evidenced by its high P/E ratio of 59, a Price to Book Value of 20.65, and an EV to EBITDA ratio of 36.29. In comparison, Expedia Group, Inc., a peer in the same industry, has a more reasonable P/E ratio of 52.57 and an EV to EBITDA of 23.67, highlighting the premium at which Rollins is trading.
Despite a year-to-date return of 20.24%, which outperformed the S&P 500's 12.22%, the long-term performance shows a stark contrast, with a 5-year return of 59.47% compared to the S&P 500's 96.61%. This suggests that while Rollins has had some short-term success, its valuation metrics indicate that it may not sustain this performance relative to the broader market.