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 significant shift in its market perception. The company appears overvalued based on its current metrics, with a P/E ratio of 67, an EV to EBITDA ratio of 24.99, and a Price to Book Value of 3.00. In comparison, peers such as The Arena Group Holdings, Inc. have a much lower P/E of 9.76, and WM Technology, Inc. boasts a more attractive EV to EBITDA of 3.99, highlighting the disparity in valuation.
While Crexendo has shown strong returns over the long term, with a 3-year return of 154.51% compared to the S&P 500's 81.19%, its recent performance has been less favorable, with a 1-month return of -10.69 against the S&P 500's 0.96. This combination of high valuation ratios and underperformance in the short term suggests that Crexendo, Inc. is currently overvalued in the market.