Is Climb Global Solutions, Inc. overvalued or undervalued?

As of 10 October 2025, Climb Global Solutions, Inc. has moved from a fair to an attractive valuation grade, indicating a shift towards being undervalued. The company appears to be undervalued with a P/E ratio of 24, which is lower than the peer average of approximately 26.6, and a PEG ratio of 0.25, suggesting strong growth potential relative to its valuation. Additionally, the EV to EBITDA ratio stands at 14.58, which is competitive compared to peers like Alliance Entertainment Holding Corp. at 14.59.
In terms of performance, Climb Global Solutions has outperformed the S&P 500 over the past year with a return of 25.62% compared to the index's 13.36%. This strong performance, coupled with a high ROCE of 49.04% and a robust dividend yield of 39.80%, reinforces the notion that the stock is attractively priced relative to its growth prospects and returns.