Is Moelis & Co. overvalued or undervalued?

As of 7 July 2025, the valuation grade for Moelis & Co. has moved from attractive to expensive, indicating a shift towards overvaluation. The company appears to be overvalued based on its P/E ratio of 30, which is higher than the peer average of 29.53 for Jefferies Financial Group, and its EV to EBITDA ratio of 22.99, which is also above the industry average. Additionally, the PEG ratio stands at an exceptionally low 0.02, suggesting that the stock may not be growing at a pace that justifies its current price.
In comparison to its peers, Moelis & Co. has a higher P/E ratio than Jefferies Financial Group, which is fairly valued at 29.53, and Houlihan Lokey, which is also expensive at 31.41. Despite its strong ROCE of 67.97% and ROE of 35.03%, these metrics do not sufficiently counterbalance the high valuation ratios. Over the past year, Moelis & Co. has returned 12.80%, trailing behind the S&P 500's 17.14%, reinforcing the notion that it may be overvalued relative to broader market performance.