Is Gitlab, Inc. overvalued or undervalued?

As of 3 September 2025, the valuation grade for Gitlab, Inc. has moved from attractive to risky, indicating a significant deterioration in its investment appeal. The company appears to be overvalued, as evidenced by its exceptionally high P/E ratio of 2069, a Price to Book Value of 10.39, and a PEG Ratio of 20.55, which are all well above typical industry standards. In comparison, Duolingo, Inc. has a P/E of 104.90 and Informatica, Inc. shows a P/E of 1253.77, both indicating that Gitlab is not only underperforming but also carries a higher risk relative to its peers.
Additionally, Gitlab's recent stock performance has been disappointing, with a year-to-date return of -11.2%, significantly lagging behind the S&P 500's return of 12.22% during the same period. This trend reinforces the notion that Gitlab is overvalued, as the company struggles to deliver returns in a favorable market environment.