Is Genius Sports Ltd. overvalued or undervalued?

Sep 20 2025 06:43 PM IST
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As of May 20, 2021, Genius Sports Ltd. is considered risky and overvalued due to its high Price to Book Value of 3.45, an EV to EBITDA of 26.11, and negative returns on capital, despite a strong year-to-date return of 45.43%.
As of 20 May 2021, the valuation grade for Genius Sports Ltd. has moved from does not qualify to risky, indicating a shift towards a more cautious outlook. The company appears to be overvalued given its financial metrics, particularly with a Price to Book Value of 3.45, an EV to EBITDA of 26.11, and a negative ROCE of -8.87%. In comparison to peers, Genius Sports Ltd. has a significantly lower EV to EBITDA ratio than ODDITY Tech Ltd., which stands at 21.5407, and a worse P/E ratio than Compass, Inc. at -170.0291.

Despite a strong year-to-date return of 45.43% compared to the S&P 500's 12.22%, the overall financial health and valuation ratios suggest that the stock is not justified at its current price. The combination of negative returns on equity and capital employed further reinforces the notion that Genius Sports Ltd. is overvalued in the current market environment.
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