Is GigaCloud Technology, Inc. overvalued or undervalued?

As of 12 September 2025, the valuation grade for GigaCloud Technology, Inc. has moved from very attractive to attractive, indicating a shift towards a more cautious outlook. The company appears to be undervalued, particularly given its P/E ratio of 6, which is significantly lower than the peer average of 7.79, and its PEG ratio of 0.38, suggesting strong growth potential relative to its price. Additionally, the EV to EBITDA ratio stands at 3.84, which is also favorable compared to peers like DXP Enterprises, Inc. with an EV to EBITDA of 12.76.
In terms of performance, GigaCloud has outperformed the S&P 500 with a year-to-date return of 57.24% compared to the index's 12.22%, and a one-year return of 67.84% versus 17.14% for the S&P 500. This strong performance reinforces the notion that GigaCloud is currently undervalued in the market.