Is eXp World Holdings, Inc. overvalued or undervalued?

As of 22 February 2024, the valuation grade for eXp World Holdings, Inc. has moved from expensive to risky, indicating a deterioration in its perceived value. The company appears to be overvalued, as evidenced by its high P/E ratio of 160, a Price to Book Value of 6.76, and an EV to EBITDA of 56.35, all of which significantly exceed typical industry benchmarks. In comparison, peers such as Jones Lang LaSalle, Inc. and Howard Hughes Holdings, Inc. have more reasonable P/E ratios of 25.21 and 18.48, respectively, suggesting that eXp World Holdings is not aligned with its industry.
The stock has shown mixed performance against the S&P 500, with a 1-week return of 2.02% compared to the index's 1.05%, but it has significantly underperformed over longer periods, including a 1-year return of -18.21% versus the S&P 500's 17.14%. This trend reinforces the notion that the stock is currently overvalued given its high valuation ratios and poor long-term performance relative to the broader market.