Is Trinity Industries, Inc. overvalued or undervalued?

As of 1 August 2025, the valuation grade for Trinity Industries, Inc. has moved from expensive to very expensive, indicating a significant concern regarding its current valuation. The company appears to be overvalued based on its P/E ratio of 13, which is lower than the peer average of 17.77, and its EV to EBITDA ratio of 10.72, which is also above the peer average of 11.63. Additionally, the PEG ratio of 1.06 suggests that the stock may not be growing at a rate that justifies its current price.
In comparison to its peers, CNH Industrial NV has a fair valuation with a P/E of 19.42, while BorgWarner, Inc. is also categorized as very expensive with a P/E of 11.57. The significant divergence in valuation metrics highlights that Trinity is not only overvalued relative to its peers but also faces challenges in delivering returns, as evidenced by its year-to-date return of -18.49% compared to the S&P 500's 12.22%. This underperformance reinforces the notion that the stock is trading at a premium that may not be justified by its financial performance.