Is Gambling.com Group Ltd. overvalued or undervalued?

As of 14 August 2025, the valuation grade for Gambling.com Group Ltd. has moved from very attractive to fair. The company appears to be fairly valued based on its current metrics. The P/E ratio stands at 11, which is relatively low compared to its peers, such as Weave Communications, Inc. with a P/E of -21.03 and Digital Turbine, Inc. with a P/E of -6.26. Additionally, the EV to EBITDA ratio is 10.22, while the PEG ratio is notably low at 0.17, indicating potential undervaluation relative to growth expectations.
In terms of performance, Gambling.com Group Ltd. has experienced a year-to-date return of -40.98%, significantly underperforming the S&P 500's positive return of 12.22% during the same period. This stark contrast reinforces the notion that the stock may be fairly valued, especially when considering its strong ROE of 25.33% and ROCE of 18.30%. Overall, while the company is currently fairly valued, the substantial decline in stock performance compared to the benchmark suggests caution for potential investors.