Is Magnite, Inc. overvalued or undervalued?

As of 26 February 2025, the valuation grade for Magnite, Inc. has moved from expensive to fair, indicating a shift towards a more favorable assessment. The company is currently fairly valued. Key ratios include a P/E ratio of 75, an EV to EBITDA of 21.17, and a PEG ratio of 0.55, which suggests that while the stock may appear high on a P/E basis, its growth potential is being recognized in the PEG ratio.
In comparison to peers, Magnite's P/E ratio of 78.19 is significantly higher than Adeia, Inc., which has a P/E of 16.95 and is rated as attractive. Meanwhile, Zuora, Inc. is considered risky with a P/E of -95.31. Notably, Magnite has outperformed the S&P 500 over various time frames, including a 45.08% return over the past year compared to the S&P 500's 10.26%, reinforcing its valuation story.