Is Artisan Partners Asset Management, Inc. overvalued or undervalued?

As of 2 July 2024, the valuation grade for Artisan Partners Asset Management, Inc. has moved from attractive to very attractive, indicating a stronger outlook for the company. Based on the current metrics, Artisan Partners appears to be undervalued. The P/E ratio stands at 14, significantly lower than the peer average of 15.32, while the EV to EBITDA ratio of 6.91 also compares favorably against peers like Janus Henderson Group Plc at 5.77 and Blue Owl Capital, Inc. at 34.23. Additionally, the PEG ratio of 1.26 suggests that the stock is reasonably priced relative to its growth prospects.
In terms of performance, Artisan Partners has shown a YTD return of 6.32%, which lags behind the S&P 500's return of 12.22% over the same period, and a 1Y return of 8.54% compared to the S&P 500's 17.14%. This underperformance may indicate that the market has not yet fully recognized the company's value, reinforcing the notion that it is undervalued relative to its peers and growth potential.