Is Magnite, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Magnite, Inc. has moved from very attractive to fair. The company appears to be overvalued, given its high P/E ratio of 75 compared to peers like Adeia, Inc. with a P/E of 17.77 and ODDITY Tech Ltd. at 32.28. Additionally, Magnite's EV to EBITDA stands at 41.33, which is significantly higher than ODDITY Tech's 21.54, indicating a premium valuation relative to its earnings potential. The PEG ratio of 0.55 suggests that while growth expectations might be reasonable, the current price does not reflect an attractive valuation.
In terms of performance, Magnite has outperformed the S&P 500 over the past year with a return of 46.08% compared to the index's 14.08%, and it has also shown strong returns over three and five years, at 153.98% and 104.58%, respectively. However, the recent one-month decline of 25.03% raises concerns about its short-term outlook. Overall, despite its historical performance, the current valuation metrics indicate that Magnite, Inc. is overvalued relative to its peers and market conditions.