Is Blue Owl Capital, Inc. overvalued or undervalued?

As of 1 August 2024, Blue Owl Capital, Inc. has moved from a fair to an expensive valuation grade. The company appears overvalued based on its current financial metrics. The P/E ratio stands at 128, significantly higher than the industry average, while the EV to EBITDA ratio is 34.72, indicating a premium valuation compared to peers. The PEG ratio of 2.90 further supports this assessment, suggesting that the stock is priced for growth that may not materialize.
In comparison to its peers, Blue Owl Capital has a P/E ratio of 123.919 and an EV to EBITDA of 33.6075, both of which are elevated relative to the industry standards. Notably, the company's return on equity (ROE) is 9.90%, which, while respectable, does not justify the high valuation multiples. Additionally, the stock has underperformed against the S&P 500 year-to-date, with a return of -20.16% compared to the index's 2.44%. This combination of high valuation ratios and recent performance trends suggests that Blue Owl Capital is currently overvalued.