Is GoDaddy, Inc. overvalued or undervalued?

As of 7 August 2025, the valuation grade for GoDaddy, Inc. has moved from expensive to attractive, indicating a shift towards a more favorable assessment. The company appears to be undervalued, particularly when considering its P/E ratio of 34, which is significantly lower than the peer average of 62.31 for MSCI, Inc. Additionally, GoDaddy's EV to EBITDA stands at 26.23, again more attractive compared to the industry benchmarks, while its ROE is exceptionally high at 389.06%, suggesting strong profitability relative to equity.
In comparison to its peers, GoDaddy's valuation metrics are compelling, especially when juxtaposed with Verisk Analytics, Inc., which has a P/E of 156.72, and Tyler Technologies, Inc., with a P/E of 93.11. While GoDaddy has faced challenges recently, evidenced by a year-to-date return of -25.84% compared to the S&P 500's 12.22%, its long-term performance remains robust with a 3-year return of 95.25% versus the S&P 500's 70.41%. This suggests that despite recent volatility, GoDaddy's underlying value and growth potential remain strong.