Is Priority Technology Holdings, Inc. overvalued or undervalued?

As of 8 August 2024, the valuation grade for Priority Technology Holdings, Inc. has moved from expensive to risky. The company is currently considered undervalued based on its financial metrics. Key ratios include a P/E ratio of 21, an EV to EBITDA of 7.96, and a PEG ratio of 0.04, which suggests significant growth potential relative to its price.
In comparison to peers, Priority Technology's P/E ratio of 21 is notably lower than Red Violet, Inc. at 77.67, indicating that Priority may be undervalued relative to its growth prospects. Additionally, Bandwidth, Inc. has a negative P/E ratio, further highlighting the relative attractiveness of Priority Technology. Despite a challenging year-to-date return of -32.00%, the company's one-year return of 73.70% outpaces the S&P 500's 10.26%, reinforcing the notion that it may be undervalued in the current market.