Is Trinity Industries, Inc. overvalued or undervalued?

As of 5 May 2025, the valuation grade for Trinity Industries, Inc. has moved from very expensive to expensive. The company is currently considered overvalued. Key ratios include a P/E ratio of 13, an EV to EBITDA of 10.72, and a Price to Book Value of 2.14. In comparison to peers, Trinity's P/E ratio is lower than Arcosa, Inc. at 39.12 and higher than Terex Corp. at 14.35, indicating a relative overvaluation in the context of its industry.
Despite a significant dividend yield of 421.49%, the company's return on equity (ROE) stands at 16.37%, which is relatively strong yet does not justify the current price level given the overall market performance. Over the past year, Trinity has underperformed the S&P 500, with a return of -14.71% compared to the index's 10.26%. This trend further supports the conclusion that Trinity Industries is overvalued at its current price of 26.15.