Is Emerald Holding, Inc. overvalued or undervalued?

As of 23 May 2025, the valuation grade for Emerald Holding, Inc. has moved from attractive to expensive. The company is currently overvalued based on its financial metrics. Key ratios include a P/E ratio of 42, an EV to EBITDA of 11.01, and a PEG ratio of 0.29, which suggests that despite a low growth expectation, the stock is priced high relative to its earnings potential.
In comparison to peers, Emerald's P/E ratio is significantly higher than that of Cass Information Systems, Inc. at 29.86, and Reservoir Media, Inc. at 37.13, both of which are also classified as expensive. Additionally, the company’s ROE stands at 5.71%, indicating a lower return on equity compared to industry standards. Recent stock performance shows that while Emerald has outperformed the S&P 500 over the short term, its one-year return of -25.65% starkly contrasts with the S&P's 10.26% gain, reinforcing the view that the stock is currently overvalued.