Is Magnite, Inc. overvalued or undervalued?

As of 6 August 2025, the valuation grade for Magnite, Inc. has moved from expensive to fair. The company appears to be fairly valued at this time. Key valuation ratios include a P/E ratio of 75, an EV to EBITDA ratio of 21.17, and a PEG ratio of 0.55, indicating a potential for growth relative to its price. In comparison to peers, Magnite's P/E ratio of 79.26 is higher than that of Adeia, Inc. at 17.77, but lower than ODDITY Tech Ltd. at 32.28, suggesting a mixed competitive positioning.
Notably, Magnite has outperformed the S&P 500 significantly over multiple periods, with a 1-year return of 79.55% compared to the S&P 500's 17.14%, and a 5-year return of 282.69% versus 96.61% for the index. This strong performance reinforces the narrative that while the stock is fairly valued, it has demonstrated substantial growth potential.