Is Goosehead Insurance, Inc. overvalued or undervalued?

As of 23 April 2025, Goosehead Insurance, Inc. has moved from an expensive to a risky valuation grade. The company appears to be overvalued based on its current financial metrics. The P/E ratio stands at 136, significantly higher than the peer average of 120.46, while the EV to EBITDA ratio of 53.86 also exceeds the peer average of 47.57. Additionally, the PEG ratio of 2.05 suggests that the stock may not be justified at its current price given its growth expectations.
In comparison to its peers, Goosehead Insurance's valuation metrics indicate a concerning divergence, particularly with a negative price to book value of -47.56 and negative returns on capital employed and equity. This suggests that the company's financial health is not aligned with its market valuation. While the stock has outperformed the S&P 500 over the past year with an 81.10% return compared to 10.26%, the overall financial ratios and peer comparisons indicate that Goosehead Insurance is currently overvalued.