Is Grid Dynamics Holdings, Inc. overvalued or undervalued?

As of 1 May 2025, the valuation grade for Grid Dynamics Holdings, Inc. has moved from very attractive to fair. Based on the current analysis, the company appears to be overvalued. The P/E ratio stands at 84, significantly higher than the industry average of approximately 79.32, while the EV to EBITDA ratio is 29.79, also above the peer average of 27.51. Additionally, the PEG ratio of 0.56 suggests that the stock may not be priced favorably relative to its growth prospects.
In comparison to its peers, A10 Networks, Inc. has a P/E of 28.77 and an EV to EBITDA of 22.45, indicating a more attractive valuation. Meanwhile, Model N, Inc. is considered expensive with a P/E ratio of 1182.69. The recent performance of Grid Dynamics, with a year-to-date return of -48.02% compared to the S&P 500's 2.44%, further reinforces the notion that the stock is currently overvalued.