Is AppLovin Corp. overvalued or undervalued?

As of 31 October 2025, the valuation grade for AppLovin Corp. moved from expensive to very expensive. The company is overvalued based on its current financial metrics. Key ratios include a P/E ratio of 66, a Price to Book Value of 245.75, and an EV to EBITDA of 50.94. In comparison, a peer like AppLovin Corp. has a higher P/E of 71.34 and a lower EV to EBITDA of 56.00, indicating that AppLovin is priced at a premium relative to its peers.
Despite impressive returns, with a year-to-date stock return of 95.21% compared to the S&P 500's 16.30%, the valuation ratios suggest that the stock is not justified at its current price levels. The substantial P/E and Price to Book ratios highlight a significant overvaluation, reinforcing the conclusion that AppLovin Corp. is currently overvalued.