Is DoubleVerify Holdings, Inc. overvalued or undervalued?

As of 17 July 2025, the valuation grade for DoubleVerify Holdings, Inc. has moved from expensive to very expensive, indicating a significant concern regarding its current pricing relative to its fundamentals. The company is overvalued, with a P/E ratio of 46, an EV to EBITDA ratio of 17.21, and a Price to Book Value of 2.33, all suggesting that the stock is trading at a premium compared to its earnings and book value.
In comparison to its peers, DoubleVerify's P/E ratio of 46 is lower than Duolingo, Inc.'s 104.90 but higher than Qualys, Inc.'s 25.97, indicating a mixed positioning within the industry. The EV to EBITDA ratio of 17.21 is also more favorable than Duolingo's 114.03, yet it remains elevated compared to Qualys' 21.01. Notably, the company's stock has underperformed against the S&P 500 across multiple timeframes, with a year-to-date return of -33.47% compared to the S&P 500's 12.22%, reinforcing the overvaluation narrative.