Is Diamond Hill Investment Group, Inc. overvalued or undervalued?

As of 28 November 2025, the valuation grade for Diamond Hill Investment Group, Inc. moved from fair to attractive, indicating a more favorable assessment of its value. The company appears undervalued based on its current P/E ratio of 9, which is significantly lower than the peer average of approximately 8.13, and an EV/EBITDA ratio of 6.97, which also suggests it is trading at a discount compared to its peers. Additionally, the company boasts a strong ROCE of 35.11% and an ROE of 24.04%, highlighting its efficient use of capital.
In comparison to its peers, Crescent Capital BDC, Inc. has a much higher P/E ratio of 13.31 and an EV/EBITDA of 4.42, reinforcing the notion that Diamond Hill is undervalued in its sector. Furthermore, the company's stock has underperformed against the S&P 500 across multiple time frames, with a year-to-date return of -23.92% compared to the S&P 500's 16.45%. This underperformance, coupled with the attractive valuation metrics, supports the conclusion that Diamond Hill Investment Group, Inc. is currently undervalued.