Is GoodRx Holdings, Inc. overvalued or undervalued?

As of 21 November 2025, the valuation grade for GoodRx Holdings, Inc. has moved from attractive to very attractive. Despite this positive change, the company appears to be overvalued based on its current P/E ratio of 38, which is significantly higher than the peer average of approximately 31.76 for similar companies. Additionally, the EV to EBITDA ratio stands at 9.64, indicating a premium compared to some peers, while the Price to Book Value is 2.23, suggesting that the market is pricing the stock at a higher value relative to its book value.
When compared to its peers, GoodRx's valuation ratios indicate a disparity, particularly against PropertyGuru Group Ltd. and ZipRecruiter, Inc., which have P/E ratios of -132.05 and -12.45, respectively. This context highlights that GoodRx's valuation may not be justified given its performance metrics, such as a ROE of 5.92% and a ROCE of 11.40%. Furthermore, the company's stock has underperformed significantly against the S&P 500, with a year-to-date return of -41.72% compared to the index's 12.26%, reinforcing the notion that the stock may be overvalued.