GATX Valuation

GATX Corp

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172.690

+3.56(2.105%)1D

Overview
Forecast
Valuation
Earnings

GATX Relative Valuation

GATX's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, GATX is overvalued; if below, it's undervalued.

Historical Valuation

GATX Corp (GATX) is now in the Fair zone, suggesting that its current forward PE ratio of 18.45 is considered Fairly compared with the five-year average of 18.30. The fair price of GATX Corp (GATX) is between 162.83 to 192.34 according to relative valuation methord.

Relative Value

Fair Zone

162.83-192.34

Current Price：172.83

Fair

18.45

Trailing

Forward

12.53

EV/EBITDA

GATX Corp. (GATX) has a current EV/EBITDA of 12.53. The 5-year average EV/EBITDA is 11.14. The thresholds are as follows: Strongly Undervalued below 9.97, Undervalued between 9.97 and 10.55, Fairly Valued between 11.73 and 10.55, Overvalued between 11.73 and 12.31, and Strongly Overvalued above 12.31. The current Forward EV/EBITDA of 12.53 falls within the Strongly Overvalued range.

24.71

EV/EBIT

GATX Corp. (GATX) has a current EV/EBIT of 24.71. The 5-year average EV/EBIT is 24.78. The thresholds are as follows: Strongly Undervalued below 21.79, Undervalued between 21.79 and 23.28, Fairly Valued between 26.28 and 23.28, Overvalued between 26.28 and 27.78, and Strongly Overvalued above 27.78. The current Forward EV/EBIT of 24.71 falls within the Historic Trend Line -Fairly Valued range.

3.41

GATX Corp. (GATX) has a current PS of 3.41. The 5-year average PS is 2.84. The thresholds are as follows: Strongly Undervalued below 2.19, Undervalued between 2.19 and 2.51, Fairly Valued between 3.16 and 2.51, Overvalued between 3.16 and 3.48, and Strongly Overvalued above 3.48. The current Forward PS of 3.41 falls within the Overvalued range.

9.02

P/OCF

GATX Corp. (GATX) has a current P/OCF of 9.02. The 5-year average P/OCF is 7.76. The thresholds are as follows: Strongly Undervalued below 5.51, Undervalued between 5.51 and 6.64, Fairly Valued between 8.89 and 6.64, Overvalued between 8.89 and 10.01, and Strongly Overvalued above 10.01. The current Forward P/OCF of 9.02 falls within the Overvalued range.

-7.99

P/FCF

GATX Corp. (GATX) has a current P/FCF of -7.99. The 5-year average P/FCF is -2313.40. The thresholds are as follows: Strongly Undervalued below -15515.21, Undervalued between -15515.21 and -8914.30, Fairly Valued between 4287.51 and -8914.30, Overvalued between 4287.51 and 10888.41, and Strongly Overvalued above 10888.41. The current Forward P/FCF of -7.99 falls within the Historic Trend Line -Fairly Valued range.

GATX Corp (GATX) has a current Price-to-Book (P/B) ratio of 2.26. Compared to its 3-year average P/B ratio of 2.02 , the current P/B ratio is approximately 11.67% higher. Relative to its 5-year average P/B ratio of 1.89, the current P/B ratio is about 19.34% higher. GATX Corp (GATX) has a Forward Free Cash Flow (FCF) yield of approximately -12.21%. Compared to its 3-year average FCF yield of -20.06%, the current FCF yield is approximately -39.12% lower. Relative to its 5-year average FCF yield of -18.86% , the current FCF yield is about -35.27% lower.

2.26

P/B

Median3y

2.02

Median5y

1.89

-12.15

FCF Yield

Median3y

-20.06

Median5y

-18.86

Competitors Valuation Multiple

The average P/S ratio for GATX's competitors is 4.74, providing a benchmark for relative valuation. GATX Corp Corp (GATX) exhibits a P/S ratio of 3.41, which is -27.94% above the industry average. Given its robust revenue growth of 11.33%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Norfolk Southern Corp

Canadian National Railway Co

Canadian Pacific Kansas City Ltd

Performance Decomposition

Market capitalization of GATX increased by 28.70% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 11.48 to 17.54.

The secondary factor is the Revenue Growth, contributed 11.33%to the performance.

Overall, the performance of GATX in the past 1 year is driven by Margin Expansion. Which is more sustainable.

11.33%

386.70M → 430.50M

Revenue Growth

52.79%

11.48 → 17.54

Margin Expansion

-35.42%

29.97 → 19.35

P/E Change

28.70%