Is IAC, Inc. overvalued or undervalued?

As of 7 May 2024, the valuation grade for IAC, Inc. has moved from attractive to risky, indicating a shift in perception regarding its investment potential. The company is currently considered overvalued. Key ratios include a P/E ratio of 9, an EV to EBITDA of 9.63, and a Price to Book Value of 0.67, which suggest that while the earnings are relatively low, the valuation metrics do not favor a strong investment case.
In comparison to peers, IAC, Inc. has a P/E ratio of 8.83, which is lower than the industry average, indicating that it may be undervalued relative to its earnings potential. However, the EV to EBITDA ratio of 9.93 for a peer suggests that IAC is not favorably positioned in terms of operational efficiency. Notably, over the past year, IAC has underperformed the S&P 500, with a return of -5.24% compared to the index's 10.26%, reinforcing the notion of its current overvaluation.