Is BrightSphere Investment Group, Inc. overvalued or undervalued?

As of 5 August 2025, the valuation grade for BrightSphere Investment Group, Inc. has moved from fair to expensive, indicating a shift towards overvaluation. The company appears overvalued based on its current metrics, with a P/E ratio of 12, a Price to Book Value of 50.29, and an EV to EBITDA of 5.54. In comparison, peers such as Sixth Street Specialty Lending, Inc. have a P/E of 12.44 and Virtus Investment Partners, Inc. with a P/E of 15.45, suggesting that BrightSphere's valuation is relatively high against its industry counterparts.
Despite the overvaluation, BrightSphere has shown impressive stock performance, with a year-to-date return of 89.83% compared to the S&P 500's 12.22%, and a five-year return of 273.41% against the S&P 500's 96.61%. This strong performance may reflect investor optimism, but the high valuation ratios indicate that the stock may not be a sustainable investment at its current price.