Is Donnelley Financial Solutions, Inc. overvalued or undervalued?

As of 7 July 2025, the valuation grade for Donnelley Financial Solutions, Inc. moved from expensive to fair. Based on the current metrics, the company appears fairly valued. Key ratios include a P/E ratio of 18, an EV to EBITDA of 8.85, and a Price to Book Value of 4.06. In comparison, Clearwater Analytics Holdings, Inc. is very attractive with a P/E of 12.49, while Agilysys, Inc. is very expensive with a P/E of 275.52.
Despite the recent valuation adjustment, Donnelley Financial Solutions has underperformed relative to the S&P 500, with a year-to-date return of -14.79% compared to the index's 12.22%. However, over a five-year period, the stock has delivered a remarkable return of 343.20%, significantly outpacing the S&P 500's 96.61%.