Is Crexendo, Inc. overvalued or undervalued?

As of 8 September 2025, the valuation grade for Crexendo, Inc. has moved from expensive to very expensive, indicating a significant shift in its perceived value. The company appears to be overvalued based on its high valuation ratios, including a P/E ratio of 67, an EV to EBITDA of 24.99, and a Price to Book Value of 3.00. In comparison, peers such as The Arena Group Holdings, Inc. have a P/E of 9.76, while WM Technology, Inc. boasts a more attractive P/E of 8.03, highlighting the disparity in valuation within the sector.
Despite Crexendo's strong recent performance, with a year-to-date return of 30.40% compared to the S&P 500's 12.22%, the elevated valuation ratios suggest that the stock may not be justified at its current price level. Overall, Crexendo, Inc. is considered overvalued in the current market environment.