Is Progyny, Inc. overvalued or undervalued?

As of 27 February 2025, Progyny, Inc. has moved from a fair to an expensive valuation grade. The company appears overvalued based on its current metrics, with a P/E ratio of 35, a Price to Book Value of 3.98, and an EV to EBITDA of 20.94. In comparison to its peers, Progyny's P/E ratio is significantly higher than ADT, Inc. at 10.02 and MAXIMUS, Inc. at 15.70, indicating a premium valuation that may not be justified by its performance.
Additionally, Progyny's recent stock performance has been underwhelming, with a 1-year return of -7.86%, compared to the S&P 500's gain of 17.14% during the same period. This trend continues over longer time frames, with a 3-year return of -44.71% against the S&P 500's 70.41%, further reinforcing the notion that the stock is overvalued relative to its market performance.