Is Marathon Digital Holdings, Inc. overvalued or undervalued?

As of 8 May 2025, the valuation grade for Marathon Digital Holdings, Inc. has moved from attractive to risky, indicating a significant deterioration in its financial outlook. The company appears to be overvalued based on its current metrics, particularly given its negative earnings performance reflected in a P/E ratio that is not applicable due to losses. Key ratios include a Price to Book Value of 1.49, an EV to EBIT of -14.19, and an EV to EBITDA of -141.78, all of which suggest substantial challenges in generating profits.
In comparison to peers, Marathon's valuation stands out unfavorably; for instance, GoDaddy, Inc. has a P/E of 32.65 and an EV to EBITDA of 25.60, while FactSet Research Systems, Inc. shows a P/E of 31.75 and an EV to EBITDA of 21.04, both indicating a healthier financial position. Furthermore, Marathon's recent stock performance has been poor, with a year-to-date return of -15.44%, contrasting sharply with the S&P 500's positive return of 2.44% in the same period, reinforcing the notion that the company is currently overvalued.