Is Open Lending Corp. overvalued or undervalued?

As of 31 March 2025, the valuation grade for Open Lending Corp. has moved from expensive to risky. The company is currently considered overvalued. Key ratios indicate significant financial distress, with a Price to Book Value of 3.07, an EV to EBIT of -1.89, and an ROE of -174.72%.
In comparison to peers, Open Lending Corp. stands out negatively; for instance, Magnite, Inc. has a P/E of 78.19 and an EV to EBITDA of 22.15, while Phreesia, Inc. shows a P/E of -33.60 and an EV to EBITDA of -118.76, both of which reflect a more stable valuation environment. The company's recent stock performance has been poor, with a year-to-date return of -67.34%, contrasting sharply with the S&P 500's 2.44% gain, further reinforcing the notion that Open Lending Corp. is overvalued in its current state.