Is BGC Group, Inc. overvalued or undervalued?

As of 31 October 2024, the valuation grade for BGC Group, Inc. has moved from expensive to very expensive, indicating a significant increase in perceived overvaluation. The company is currently assessed as overvalued. Key ratios include a P/E ratio of 36, an EV to EBITDA of 18.91, and a PEG ratio of 0.40, which suggests that despite the high P/E, the growth expectations may not justify the price.
In comparison to peers, BGC Group, Inc. has a higher P/E ratio than Lazard, Inc. at 14.97 and Piper Sandler Cos. at 28.65, both of which are considered expensive. Furthermore, Freedom Holding Corp. stands out with a P/E of 108.64, but it is also classified as very expensive. The company's recent stock performance shows a 15.11% return over the past year, outperforming the S&P 500's 10.26%, which may reflect investor sentiment despite the current overvaluation.