Is Grid Dynamics Holdings, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Grid Dynamics Holdings, Inc. has moved from very attractive to fair. Based on the current metrics, the company appears to be overvalued. The P/E ratio stands at 84, significantly higher than the peer average of 36.15, while the EV to EBITDA ratio is 29.79, also above the industry norm. Additionally, the PEG ratio of 0.56 indicates that the stock may not be priced appropriately relative to its growth potential.
In comparison to its peers, Model N, Inc. is considered expensive with a P/E of 1182.69, while PDF Solutions, Inc. is viewed as attractive with a P/E of 983.40. Notably, Grid Dynamics has underperformed the S&P 500 across multiple time frames, with a year-to-date return of -65.87% compared to the S&P 500's 13.30%. This stark contrast reinforces the notion that the stock may be overvalued in the current market environment.