Is PaySign, Inc. overvalued or undervalued?

As of 6 June 2025, the valuation grade for PaySign, Inc. has moved from expensive to very expensive, indicating a significant increase in perceived overvaluation. The company is currently considered overvalued. Key ratios include a P/E ratio of 44, an EV to EBIT of 41.86, and a Price to Book Value of 6.84, all of which suggest that the stock is trading at a premium compared to its earnings and book value.
In comparison to peers, PaySign's P/E ratio of 45.55 stands out, especially when contrasted with FONAR Corp., which has a more attractive P/E of 8.12. The EV to EBITDA ratio of 16.20 for PaySign also appears high relative to the industry, further supporting the overvaluation assessment. Despite recent strong stock performance, with a year-to-date return of 95.36% compared to the S&P 500's 2.44%, the elevated valuation metrics indicate that investors may be pricing in excessive growth expectations.