Is Paymentus Holdings, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Paymentus Holdings, Inc. has moved from very attractive to attractive, indicating a shift towards a more cautious outlook. The company appears to be overvalued, given its high P/E ratio of 90, which significantly exceeds the peer average of 79.78, and an EV to EBITDA ratio of 47.50, which also surpasses the industry benchmark. Additionally, the PEG ratio stands at 1.94, suggesting that the stock may be priced too high relative to its growth expectations.
In comparison to its peers, Stagwell, Inc. has a P/E of 55.57 and Viad Corp. shows a negative P/E, highlighting Paymentus's relatively high valuation. The company's recent stock performance has been underwhelming, with a year-to-date return of -10.22% compared to the S&P 500's 13.30%, although it has outperformed the index over a three-year period with a return of 162.11% versus 81.19%. Overall, these metrics suggest that while Paymentus has shown strong historical performance, its current valuation may not be justified given its high ratios and recent stock performance.