Is Alliance Entertainment Holding Corp. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Alliance Entertainment Holding Corp. moved from expensive to attractive, indicating a shift towards a more favorable assessment. Based on the available metrics, the company appears to be undervalued. The P/E ratio stands at 14, significantly lower than the peer average of approximately 23.93, while the EV to EBITDA ratio is 9.96, also below the peer comparison of 14.59. Additionally, the PEG ratio is exceptionally low at 0.01, suggesting strong growth potential relative to its price.
In comparison to its peers, Climb Global Solutions, Inc. has a P/E ratio of 26.60, and Taitron Components, Inc. has a P/E of 20.90, both indicating that Alliance Entertainment is trading at a discount relative to these companies. While specific return data is not available, the overall valuation metrics suggest that Alliance Entertainment is positioned favorably compared to the broader market, reinforcing the notion of its undervaluation.