Is MSCI, Inc. overvalued or undervalued?

As of 31 January 2019, the valuation grade for MSCI, Inc. moved from expensive to risky, indicating a shift in perception regarding its market value. The company appears to be overvalued based on its current metrics, particularly with a P/E ratio of 64, which significantly exceeds the industry average. Additionally, the PEG ratio stands at 5.54, further suggesting that the stock may not justify its price given its growth prospects.
In comparison to peers, Netflix, Inc. has a P/E of 57.44, while Automatic Data Processing, Inc. is at 47.94, both of which are lower than MSCI's ratio, reinforcing the notion of overvaluation. Furthermore, MSCI's EV to EBITDA ratio of 43.19 is also higher than that of its peers, indicating that investors are paying a premium for its earnings relative to others in the industry. Despite a recent positive stock return of 14.15% over the past year compared to the S&P 500's 10.26%, the overall valuation metrics suggest that MSCI, Inc. is currently overvalued.