Is DoubleVerify Holdings, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for DoubleVerify Holdings, Inc. has moved from attractive to very expensive, indicating a shift towards overvaluation. The company appears to be overvalued based on its high P/E ratio of 46, a Price to Book Value of 2.33, and an EV to EBITDA ratio of 17.21. In comparison, peers such as Duolingo, Inc. exhibit a significantly higher P/E of 104.90, while Qualys, Inc. shows a more reasonable P/E of 25.97, suggesting that DoubleVerify's valuation is not justified relative to its industry.
The stock has underperformed against the S&P 500 across multiple time frames, with a year-to-date return of -43.31% compared to the S&P 500's 13.30%. This stark contrast reinforces the notion that DoubleVerify Holdings, Inc. is currently overvalued in the market.