Is MicroStrategy, Inc. overvalued or undervalued?

As of 29 April 2024, MicroStrategy, Inc. has moved from an attractive to a risky valuation grade. The company is currently considered overvalued. Key ratios include a P/E ratio of 47, a Price to Book Value of 3.05, and an EV to EBIT of -1662.20, which indicates significant concerns regarding profitability and valuation metrics.
In comparison to peers, VeriSign, Inc. has a P/E of 33.71, while TKO Group Holdings, Inc. shows a P/E of 62.19, highlighting that MicroStrategy's valuation is higher than some of its competitors despite its risky classification. The company's recent stock performance has outpaced the S&P 500 over the past year, with a return of 147.47% compared to the S&P 500's 10.26%, but this does not mitigate the valuation concerns reflected in its current metrics.