Is Moelis & Co. overvalued or undervalued?

As of 24 April 2025, the valuation grade for Moelis & Co. moved from fair to expensive, indicating that the company is overvalued. The current P/E ratio stands at 30, significantly higher than its peer Lazard, Inc., which has a P/E of 14.97, and Freedom Holding Corp., which is at 108.64. Additionally, Moelis & Co. has an EV to EBITDA ratio of 22.99, compared to Lazard's much lower 6.86, further supporting the overvaluation assessment.
Moelis & Co. also exhibits a high Price to Book Value of 10.55 and an impressive ROCE of 67.97%, yet these figures do not justify its current valuation in light of its peers. The company's PEG ratio is notably low at 0.02, suggesting that growth expectations may not be sufficient to support its high price. While Moelis has outperformed the S&P 500 over the past year with a return of 13.05% compared to the index's 10.26%, the overall valuation metrics indicate that it is overvalued relative to its peers and market conditions.