Is Blue Owl Capital, Inc. overvalued or undervalued?

As of 7 July 2025, the valuation grade for Blue Owl Capital, Inc. has moved from expensive to very expensive, indicating a significant increase in perceived overvaluation. The company is currently considered overvalued, with a P/E ratio of 128, a Price to Book Value of 12.71, and an EV to EBITDA of 34.72, all of which are substantially higher than industry peers. For instance, Franklin Resources, Inc. has a P/E of 14.94, and Stifel Financial Corp. shows a more reasonable EV to EBITDA of 9.88, highlighting the stark contrast in valuation.
Despite a recent one-week stock return of 1.81% compared to the S&P 500's 1.05%, the year-to-date performance shows a decline of 17.93% against the S&P's gain of 12.22%. This underperformance reinforces the notion that Blue Owl Capital, Inc. is not only overvalued but also struggling to keep pace with broader market trends.