Is Climb Global Solutions, Inc. overvalued or undervalued?

As of 11 September 2025, the valuation grade for Climb Global Solutions, Inc. has moved from attractive to fair, indicating a shift towards a more cautious outlook. The company appears to be fairly valued at this time. Key ratios include a P/E ratio of 24, an EV to EBITDA of 14.58, and a PEG ratio of 0.25, suggesting that while the company has strong growth potential, its current valuation metrics are in line with its peers.
In comparison to its peers, Climb Global Solutions has a higher P/E ratio than Alliance Entertainment Holding Corp. at 23.93 and a lower EV to EBITDA ratio than its own at 15.98. This suggests that while Climb is fairly valued, it may not be the most attractive option compared to its competitors. Notably, Climb has outperformed the S&P 500 over multiple periods, with a 1-year return of 40.24% compared to the S&P 500's 17.14%, reinforcing its strong market performance.