Is Bumble, Inc. overvalued or undervalued?

As of 8 November 2024, Bumble, Inc. has moved from a fair to a risky valuation grade, indicating a shift in perception regarding its financial health and market position. The company appears to be overvalued based on its current metrics, particularly with a P/E ratio of 4, which is significantly lower than the industry average, suggesting that investors may be pricing in substantial risk or uncertainty about future growth. Additionally, Bumble's EV to EBITDA stands at 3.47, and its EV to Sales is 0.99, both of which further highlight the company's valuation concerns.
In comparison to peers, Bumble's P/E ratio is starkly lower than that of Sportradar Group AG, which has a P/E of 110.21, indicating that Bumble is perceived as much less valuable in the market. Other risky peers like Intapp, Inc. and RXO, Inc. also reflect negative valuations, with P/E ratios of -219.95 and -11.97, respectively. The company's recent stock performance has been poor, with a year-to-date return of -37.35%, contrasting sharply with the S&P 500's 2.44% gain, reinforcing the notion that Bumble is currently overvalued in the market.