Is Groupon, Inc. overvalued or undervalued?

As of 11 March 2025, Groupon, Inc. has moved from an attractive to a risky valuation grade, indicating a shift in perception regarding its financial health. The company is considered overvalued given its current financial metrics, particularly with a price-to-book value of 36.29 and an EV to EBITDA ratio of 62.84, which are significantly higher than industry norms. Additionally, the negative P/E ratio reflects its loss-making status, further complicating its valuation.
In comparison to peers, Groupon's valuation appears unfavorable, especially when contrasted with Revolve Group, Inc., which has a P/E ratio of 28.10 and an EV to EBITDA of 18.46, and Liquidity Services, Inc., with a P/E of 29.47 and an EV to EBITDA of 15.23. These peers demonstrate more favorable financial health and valuation metrics, reinforcing the notion that Groupon is overvalued. Despite its recent stock performance, which has outpaced the S&P 500 in the past year, the underlying financial ratios suggest caution for potential investors.