Is Paysafe Ltd. overvalued or undervalued?

As of 13 May 2025, the valuation grade for Paysafe Ltd. has moved from expensive to risky, indicating a shift in perception regarding its market position. The company is currently deemed overvalued. Key ratios reveal a P/E ratio of 56, an EV to EBITDA of 7.34, and a PEG ratio of 0.32, which suggests that despite a low growth expectation, the stock is trading at a high multiple compared to its earnings.
In comparison to its peers, Paysafe's P/E ratio of 54.75 is significantly higher than that of Healthcare Services Group, Inc. at 25.19, which is rated fair, and BrightView Holdings, Inc. at 18.83, which is considered very expensive. Additionally, the company's return performance has been disappointing, with a year-to-date decline of 28.83%, contrasting sharply with the S&P 500's gain of 2.44% over the same period. This further reinforces the conclusion that Paysafe Ltd. is overvalued in the current market environment.