Is MediaAlpha, Inc. overvalued or undervalued?

As of 6 August 2025, the valuation grade for MediaAlpha, Inc. has moved from attractive to risky, indicating a shift in perception regarding its investment potential. The company appears to be overvalued based on its current metrics, particularly with a P/E ratio of 14, which is relatively low compared to its peers, such as Model N, Inc. with a P/E of 1182.69 and Grid Dynamics Holdings, Inc. at 36.15. Additionally, MediaAlpha's EV to EBITDA ratio stands at 10.49, while peers like OneSpan, Inc. show a more favorable ratio of 8.43, further suggesting that MediaAlpha may not be as competitively priced.
In terms of performance, MediaAlpha's stock has shown a 1-month return of 32.25%, significantly outperforming the S&P 500's 2.33% return during the same period, although it has underperformed over the past year with a decline of 23.33% compared to the S&P 500's gain of 17.14%. This mixed performance, combined with its high valuation ratios, supports the conclusion that MediaAlpha, Inc. is currently overvalued in the market.