Is eXp World Holdings, Inc. overvalued or undervalued?

As of 22 February 2024, the valuation grade for eXp World Holdings, Inc. has moved from very expensive to risky, indicating a significant shift in its perceived value. The company appears to be overvalued based on its current metrics, particularly with a P/E ratio of 160, which is substantially higher than peers such as Hilton Grand Vacations, Inc. at 28.88 and Howard Hughes Holdings, Inc. at 12.24. Additionally, eXp's EV to EBITDA stands at 56.35, further emphasizing its elevated valuation compared to the industry.
With a PEG ratio of 0.19, eXp World Holdings shows potential for growth relative to its price, but the high P/E and EV ratios suggest that the stock is not justified at its current price of 9.15. The company's return over the past year has been -14.25%, contrasting sharply with the S&P 500's 10.26% return, which reinforces the notion that eXp World Holdings is overvalued in the current market environment.