Is Crexendo, Inc. overvalued or undervalued?

As of 6 May 2025, Crexendo, Inc. has moved from a fair to an expensive valuation grade. The company is currently considered overvalued based on its high P/E ratio of 67, a Price to Book Value of 3.00, and an EV to EBIT of 57.08. In comparison, Porch Group, Inc. has a P/E of approximately -27.89, while The Arena Group Holdings, Inc. shows a P/E of 26.89, indicating that Crexendo's valuation is significantly higher than its peers.
Despite a notable return of 63.38% over the past year compared to the S&P 500's 10.26%, the elevated valuation ratios suggest that Crexendo may not sustain its current price levels. The PEG ratio of 1.65 further supports the notion that the stock is priced for growth that may not materialize, reinforcing the conclusion that Crexendo, Inc. is overvalued in the current market environment.