Is ZIM Integrated Shipping Services Ltd. overvalued or undervalued?

As of 12 March 2025, the valuation grade for ZIM Integrated Shipping Services Ltd. moved from fair to very attractive, indicating a significant improvement in its perceived value. The company appears undervalued based on its valuation metrics, particularly with a Price to Book Value of 0.53, an EV to EBIT of 0.41, and an EV to EBITDA of 0.29. These ratios suggest that ZIM is trading at a substantial discount compared to its earnings and book value.
In comparison to peers, ZIM's P/E ratio of 0.8024 is notably lower than that of Golar LNG Ltd., which stands at 22.9272, and Matson, Inc. at 6.7335, both of which indicate higher valuations. Additionally, ZIM's strong ROCE of 93.12% and ROE of 59.57% further highlight its operational efficiency and profitability. Despite recent stock performance, where ZIM has underperformed against the S&P 500 with a YTD return of -29.2% compared to the index's 12.22%, its valuation metrics suggest that it may be a compelling investment opportunity.