Is Deluxe Corp. overvalued or undervalued?

As of 15 April 2025, the valuation grade for Deluxe Corp. has moved from attractive to very attractive, indicating a positive shift in its valuation outlook. The company appears undervalued, supported by a P/E ratio of 7, a Price to Book Value of 1.07, and an EV to EBITDA ratio of 5.48. In comparison, Warner Music Group Corp. has a significantly higher P/E ratio of 27.05, while CompoSecure, Inc. shows an EV to EBITDA of 36.50, highlighting Deluxe Corp.'s relative undervaluation within its peer group.
Despite a challenging year-to-date return of -11.91% compared to the S&P 500's 12.22%, the long-term performance shows a 3-year return of 11.55%, which, while lower than the S&P 500's 70.41%, suggests potential for recovery. The current dividend yield of 7.87% further enhances the attractiveness of the stock for income-focused investors.