Is i3 Verticals, Inc. overvalued or undervalued?

As of 7 August 2025, the valuation grade for i3 Verticals, Inc. has moved from risky to expensive, indicating a shift towards overvaluation. The company is currently considered overvalued based on its financial metrics, including a Price to Book Value of 2.14, an EV to EBITDA of 20.20, and an EV to Sales ratio of 3.44. In comparison to peers, i3 Verticals has a significantly higher P/E ratio of 86.60, while Gambling.com Group Ltd. is fairly valued with a P/E of 7.51.
The recent stock performance shows that i3 Verticals has outperformed the S&P 500 over the past year, returning 47.01% compared to the S&P 500's 17.14%. However, the longer-term performance indicates a decline relative to the index, with a 5-year return of 41.08% versus the S&P 500's 96.61%. This suggests that while the company has had a strong short-term performance, its valuation metrics indicate it may not be sustainable at current levels.