Is BlackLine, Inc. overvalued or undervalued?

As of 5 August 2025, BlackLine, Inc. has moved from an attractive to a fair valuation grade. The company appears to be fairly valued based on its current metrics. Key valuation ratios include a P/E ratio of 36, an EV to EBITDA of 47.36, and a Price to Book Value of 8.55. In comparison, peers like Paycor HCM, Inc. have a P/E ratio of approximately 35.70, while Flywire Corp. boasts a much higher EV to EBITDA of 60.06, indicating a range of valuations within the industry.
Despite the fair valuation, BlackLine's recent stock performance has lagged behind the S&P 500, with a year-to-date return of -9.32% compared to the S&P 500's 12.22%, and a significant decline of -33.11% over the past five years, while the S&P 500 has gained 96.61%. This underperformance may suggest that the market has not fully recognized the company's potential, reinforcing the notion that it is fairly valued at present.