Is Newmark Group, Inc. overvalued or undervalued?

As of 30 April 2025, the valuation grade for Newmark Group, Inc. has moved from fair to very attractive, indicating a significant improvement in its perceived value. The company appears to be undervalued based on its current metrics. Key ratios include a P/E ratio of 33, an EV to EBITDA of 5.84, and a PEG ratio of 0.37, which suggests strong growth potential relative to its price.
In comparison to its peers, Newmark Group, Inc. has a lower P/E ratio than Hilton Grand Vacations, Inc. at 28.88, and a more favorable EV to EBITDA ratio compared to Howard Hughes Holdings, Inc. at 4.03. This positions Newmark favorably within its industry, especially considering its robust dividend yield of 68.75% and a return on capital employed (ROCE) of 15.76%. Additionally, Newmark's stock has outperformed the S&P 500 over the past year, returning 16.65% compared to 10.26% for the index, further reinforcing its attractive valuation.