Is The GEO Group, Inc. overvalued or undervalued?

As of 9 September 2025, The GEO Group, Inc. has moved from a fair to expensive valuation grade. The company appears to be overvalued based on its current metrics, with a P/E ratio of 35, a Price to Book Value of 2.93, and an EV to EBITDA of 9.25. In comparison to its peers, The GEO Group's P/E ratio is significantly higher than Ladder Capital Corp. at 17.19 and Alexander & Baldwin, Inc. at 17.61, both of which are categorized as very attractive.
Despite a strong one-year return of 75.70%, which outperformed the S&P 500's 17.14%, the overall valuation metrics suggest that the stock is not justified at its current price level. The high PEG ratio of 8.06 further indicates that growth expectations may not be met, reinforcing the conclusion that The GEO Group, Inc. is overvalued.