Is Match Group, Inc. overvalued or undervalued?

As of 4 May 2021, Match Group, Inc. has moved from a grade of "does not qualify" to "risky." The company appears to be undervalued based on its current valuation metrics. The P/E ratio stands at 14, while the EV to EBITDA ratio is 11.11, indicating a relatively low valuation compared to its peers. The return on capital employed (ROCE) is a strong 28.66%, suggesting efficient use of capital despite the negative book value reflected in the return on equity (ROE).
In comparison to its peers, Match Group's P/E ratio of 13.60 is significantly lower than VeriSign, Inc. at 33.71 and TKO Group Holdings, Inc. at 62.19, indicating that Match Group may be undervalued relative to these companies. Additionally, XP, Inc. has a P/E of 12.44, which is closer but still shows Match Group's potential for growth. The recent stock performance has shown a 5.96% return over the past month, outperforming the S&P 500's 3.83% return, reinforcing the notion that the stock may be undervalued in the current market.