Is Alliance Entertainment Holding Corp. overvalued or undervalued?

As of 20 June 2025, the valuation grade for Alliance Entertainment Holding Corp. has moved from very attractive to attractive. The company is currently considered undervalued. Key ratios include a P/E ratio of 14, an EV to EBITDA of 9.96, and a PEG ratio of 0.01, indicating strong growth potential relative to its price.
In comparison to peers, Alliance's P/E ratio of 14 is lower than ScanSource, Inc.'s P/E of 12.78 and significantly lower than Climb Global Solutions, Inc.'s P/E of 24.56, suggesting that Alliance may be undervalued relative to its growth prospects. Additionally, the company's recent stock performance shows a YTD return of -66.23%, contrasting sharply with the S&P 500's 2.44%, which may further support the undervaluation narrative.