Is Crexendo, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Crexendo, Inc. has moved from attractive to very expensive, indicating a shift towards overvaluation. The company is considered overvalued based on its high P/E ratio of 67, an EV to EBITDA ratio of 24.99, and a PEG ratio of 1.65. In comparison, peers such as The Arena Group Holdings, Inc. show a much lower P/E of 9.76 and WM Technology, Inc. has an EV to EBITDA of 3.99, highlighting Crexendo's relative overvaluation in the industry.
Despite a strong 3-year return of 154.51%, which significantly outperformed the S&P 500's 81.19%, the recent 1-month decline of 10.69% against a positive S&P 500 return of 0.96% suggests potential concerns about the stock's sustainability at its current price level. Overall, the high valuation ratios and peer comparisons indicate that Crexendo, Inc. is overvalued in the current market context.