Is Newmark Group, Inc. overvalued or undervalued?

As of 31 October 2025, the valuation grade for Newmark Group, Inc. has moved from very expensive to expensive. Based on the current metrics, the company appears to be overvalued. The P/E ratio stands at 33, which is significantly higher than the industry average, while the EV to EBITDA ratio is 5.84, indicating a premium valuation compared to peers like Howard Hughes Holdings, Inc. with a P/E of 18.48 and EV to EBITDA of 4.78. Additionally, the PEG ratio of 0.37 suggests that the stock is priced high relative to its growth potential.
In terms of performance, Newmark Group, Inc. has delivered a year-to-date return of 36.77%, outperforming the S&P 500's 16.30%, and has shown impressive growth over the last five years with a return of 255.38% compared to the S&P 500's 109.18%. This strong performance, however, does not mitigate the high valuation metrics, reinforcing the conclusion that the stock is overvalued in its current state.