Is Doximity, Inc. overvalued or undervalued?

As of 5 June 2025, Doximity, Inc. has moved from a very attractive to an attractive valuation grade. The company appears to be overvalued based on its current metrics. The P/E ratio stands at 49, which is significantly higher than the industry average, while the EV to EBITDA ratio is at 42.00, indicating a premium valuation compared to peers. The PEG ratio of 1.46 suggests that the stock may be priced for growth that may not materialize as expected.
In comparison, Altair Engineering, Inc. is deemed expensive with a P/E of 472.27, but it also highlights the high valuation of Doximity relative to its peers. Doximity's return over the past year has outperformed the S&P 500, with a return of 110.68% compared to the index's 10.26%. However, despite strong returns, the high valuation ratios suggest that the stock may not offer further upside, reinforcing the conclusion that it is overvalued.