Is MediaAlpha, Inc. overvalued or undervalued?

As of 18 June 2025, the valuation grade for MediaAlpha, Inc. has moved from attractive to very attractive, indicating a strong improvement in its perceived value. The company is currently undervalued, with a P/E ratio of 14, significantly lower than peers such as A10 Networks, Inc. at 28.77 and Model N, Inc. at 1182.69. Additionally, MediaAlpha boasts an impressive ROCE of 67.48% and an extraordinary ROE of 636.05%, which further underscores its potential for growth.
In comparison to its peers, MediaAlpha's EV to EBITDA ratio of 10.49 is more favorable than Applied Digital Corp.'s risky valuation with an EV to EBITDA of 123.26. The company's PEG ratio stands at an exceptionally low 0.07, suggesting that it is undervalued relative to its growth prospects. Despite recent stock performance trailing the S&P 500 over the past year, the underlying financial metrics indicate that MediaAlpha, Inc. presents a compelling investment opportunity at its current price of 10.84.