Is Innodata, Inc. overvalued or undervalued?

As of 28 May 2025, the valuation grade for Innodata, Inc. has moved from very attractive to attractive, indicating a shift in market perception. The company is currently considered overvalued based on its P/E ratio of 50, which significantly exceeds the industry average of approximately 42.88. Additionally, Innodata's EV to EBITDA stands at 46.83, while its PEG ratio is an exceptionally low 0.04, suggesting that despite high growth expectations, the current valuation may not be justified.
In comparison to peers, Global Blue Group Holding AG, which is rated very attractive, has a P/E of 30.28 and an EV to EBITDA of 11.33, highlighting a stark contrast in valuation metrics. Other risky peers like Bitdeer Technologies Group and TeraWulf, Inc. show negative P/E ratios, further emphasizing the relative overvaluation of Innodata. Notably, Innodata has outperformed the S&P 500 with a remarkable 1-year return of 254.27% compared to the index's 10.26%, but this strong performance may not be sustainable given its current valuation metrics.