Is Alliance Entertainment Holding Corp. overvalued or undervalued?

As of 10 September 2025, the valuation grade for Alliance Entertainment Holding Corp. has moved from attractive to fair. The company appears to be fairly valued based on its current metrics. Key ratios include a P/E ratio of 14, an EV to EBITDA of 9.96, and a PEG ratio of 0.01, which indicates strong growth potential relative to its price.
In comparison to peers, Alliance's P/E ratio is significantly lower than Climb Global Solutions, Inc. at 26.60 and Taitron Components, Inc. at 20.90, suggesting it may be undervalued relative to its industry. However, its EV to EBITDA ratio is competitive against Taitron's 11.85, indicating a reasonable valuation in terms of earnings before interest, taxes, depreciation, and amortization. Over the past year, Alliance has outperformed the S&P 500 with a return of 234.6% compared to the index's 17.14%, reinforcing the notion that the stock may still hold value despite its recent grade change.