Is Magnite, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Magnite, Inc. has moved from very attractive to fair. Based on the current metrics, the company appears to be overvalued. 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 despite some growth potential, the stock is priced high relative to its earnings and cash flow generation capabilities.
In comparison to peers, Magnite's P/E ratio of 75 is significantly higher than Adeia, Inc. at 17.77 and ODDITY Tech Ltd. at 32.28, indicating a premium valuation. Furthermore, while Magnite has shown strong returns over the long term, such as a 153.98% return over three years compared to the S&P 500's 81.19%, its recent performance has been mixed, with a -25.03% return over the past month against the S&P 500's 0.96%. This suggests that while the company has potential, its current valuation may not be justified given the recent volatility.