Is Bumble, Inc. overvalued or undervalued?

As of 8 November 2024, Bumble, Inc. has moved from an attractive to a risky valuation grade. The company appears to be overvalued based on its current metrics, with a P/E ratio of 4, which is significantly lower than the peer average of 5.25. Additionally, Bumble's EV to EBITDA stands at 3.47, indicating a lower valuation compared to its peers, while the PEG ratio of 0.04 suggests that the stock is not priced for growth.
In comparison to its peers, Bumble's valuation ratios reflect a concerning trend, particularly when juxtaposed with its industry counterparts. For instance, the peer average EV to EBITDA is 3.68, which further emphasizes Bumble's relative overvaluation. Despite a recent 1-year stock return of 15.46%, which is slightly below the S&P 500's 17.14%, the long-term performance is troubling, with a staggering 3-year return of -69.57% compared to the S&P's 70.41%. This performance indicates significant challenges ahead for Bumble, reinforcing the conclusion that the stock is overvalued.