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 at 29.79, also above the industry standard. 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. is considered expensive with a P/E of 1182.69, while PDF Solutions, Inc. is attractive with a P/E of 983.40. The notable outlier in the peer group is PROS Holdings, Inc., which has a negative P/E, indicating significant risk. Furthermore, Grid Dynamics has underperformed against the S&P 500, with a year-to-date return of -65.87% compared to the index's 13.30%, reinforcing the notion that the stock is overvalued.