Is Hamilton Lane, Inc. overvalued or undervalued?

As of 20 June 2025, the valuation grade for Hamilton Lane, Inc. has moved from expensive to very expensive. The company is currently considered overvalued based on its high valuation metrics. The P/E ratio stands at 37, significantly above the industry average, while the EV to EBITDA ratio is 22.49, indicating a premium valuation compared to peers. Additionally, the Price to Book Value is 11.26, further emphasizing the elevated valuation.
In comparison to its peers, Hamilton Lane, Inc. has a P/E ratio lower than Morningstar, Inc. at 40.59 but higher than SEI Investments Co. at 17.30, which reflects a stark contrast in valuation within the industry. The PEG ratio of 0.99 suggests that despite the high P/E, the growth expectations are somewhat reasonable, yet still, the overall valuation remains steep. The recent stock performance shows a 1-year return of 18.13%, outperforming the S&P 500's 10.26%, but the longer-term view indicates a significant underperformance relative to the index over 10 years.