Is LiveRamp Holdings, Inc. overvalued or undervalued?

As of 5 February 2025, the valuation grade for LiveRamp Holdings, Inc. has moved from attractive to risky, indicating a significant deterioration in its investment appeal. The company is currently overvalued, with a staggering P/E ratio of 962, a Price to Book Value of 5.12, and an EV to EBITDA ratio of 145.40. These figures starkly contrast with its peer, which has a P/E of approximately 907 and an EV to EBITDA of 136.25, highlighting the excessive valuation of LiveRamp relative to its industry.
Additionally, the company's return on equity (ROE) stands at a mere 0.53%, and its return on capital employed (ROCE) is only 2.50%, further underscoring the challenges it faces in generating shareholder value. Over the past year, LiveRamp's stock has underperformed against the S&P 500, with a return of 3.94% compared to the index's 10.26%. This underperformance, combined with the high valuation ratios, reinforces the conclusion that LiveRamp Holdings, Inc. is currently overvalued.