Is NerdWallet, Inc. overvalued or undervalued?

As of 21 November 2025, the valuation grade for NerdWallet, Inc. moved from very attractive to attractive, indicating a shift towards a more cautious outlook. The company appears to be overvalued based on its current P/E ratio of 20, which is significantly higher than the peer average of approximately 14.42, and an EV to EBITDA ratio of 10.80, which is also elevated compared to peers like Gambling.com Group Ltd. at 7.39. Additionally, the PEG ratio of 0.03 suggests that the stock may not be priced appropriately relative to its growth potential.
In comparison to its peers, NerdWallet, Inc. stands out with a higher ROE of 11.16% and a ROCE of 6.98%, but these metrics do not fully justify its current valuation. The stock has shown mixed performance against the S&P 500, with a year-to-date return of 4.66% compared to the index's 12.26%, and a 1-year return of -0.36% versus 11.00% for the S&P 500, reinforcing the notion that the stock may be overvalued in the current market context.