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. The P/E ratio stands at 75, significantly higher than the industry average, while the EV to EBITDA ratio is 21.17, indicating a premium valuation compared to peers like Adeia, Inc. with an EV to EBITDA of 10.5936 and ODDITY Tech Ltd. at 21.5407.
The PEG ratio of 0.55 suggests that the stock might be undervalued relative to its growth prospects; however, the high P/E ratio raises concerns about sustainability. Notably, while Magnite has outperformed the S&P 500 over the 1-year (46.08% vs. 14.08%) and 3-year (153.98% vs. 81.19%) periods, its recent 1-month return of -25.03% contrasts sharply with the S&P 500's modest gain of 0.96%, reinforcing the notion that the stock may be facing challenges in maintaining its valuation.