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. The company appears to be overvalued based on its current metrics. The P/E ratio stands at 84, significantly higher than the industry average, while the EV to EBITDA ratio is 29.79, indicating a premium valuation compared to peers. Additionally, the PEG ratio of 0.56 suggests that the stock may not be justified at its current price given its growth prospects.
In comparison to its peers, Model N, Inc. has a P/E ratio of 1182.69, which is extremely high and indicates overvaluation, while PDF Solutions, Inc. is considered attractive with a P/E of 983.40. This highlights that Grid Dynamics, while fair, is still positioned in a relatively high valuation landscape. Notably, there is no return data available for the company to compare against the S&P 500, but the valuation metrics suggest caution for potential investors.