Is i3 Verticals, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for i3 Verticals, Inc. has moved from attractive to expensive, indicating a shift towards overvaluation. The company appears overvalued, particularly when considering its P/B ratio of 2.14, an EV/EBITDA of 20.20, and an EV/Sales ratio of 3.44. In comparison, Gambling.com Group Ltd., which is rated fair, has a P/E of 7.51 and an EV/EBITDA of 7.39, highlighting the disparity in valuation metrics among peers.
Despite recent performance, where i3 Verticals has outperformed the S&P 500 with a YTD return of 37.24% compared to the index's 13.30%, the high valuation ratios suggest that the stock may not be a sustainable investment at current levels. The company's negative ROE of -0.33% and low ROCE of 2.84% further reinforce concerns about its financial health and long-term value.