Is Acacia Research Corp. overvalued or undervalued?

As of 13 March 2025, Acacia Research Corp. has moved from a valuation grade of very attractive to risky. The company appears to be overvalued given its high P/E ratio of 63, which significantly exceeds the industry average of approximately 60.41. Additionally, the EV to EBITDA ratio stands at 4.21, while the ROCE and ROE are notably low at 2.10% and 1.14%, respectively, indicating inefficiencies in generating returns.
When compared to peers, Acacia Research Corp. is less favorable than Viad Corp., which has a P/E ratio of -16.40, and Cass Information Systems, Inc., which is deemed expensive with a P/E of 29.86. The stock has underperformed relative to the S&P 500, with a year-to-date return of -16.82% compared to the index's 2.44%. Overall, the combination of high valuation ratios and poor performance metrics suggests that Acacia Research Corp. is overvalued in the current market.