Is IAC, Inc. overvalued or undervalued?

As of 7 May 2024, the valuation grade for IAC, Inc. has moved from fair to risky, indicating a shift in perception regarding its investment potential. The company appears to be overvalued given its P/E ratio of 9, which is significantly lower than its peer Match Group, Inc. at 17.35 and XP, Inc. at 11.30. Additionally, IAC's EV to EBITDA ratio of 9.63 and PEG ratio of 0.01 further suggest that the stock may not be justified at its current price level.
In comparison to its peers, IAC, Inc. is lagging behind, with a ROE of 7.87% and ROCE of 2.53%, which are not competitive against industry standards. Notably, while IAC has shown positive returns over the past week and month, its longer-term performance has been disappointing, with a 1-year return of -14.66% compared to the S&P 500's 17.14%, and a staggering -41.02% over the past five years against the S&P's 96.61%. This stark contrast reinforces the notion that IAC, Inc. is currently overvalued.