Is PubMatic, Inc. overvalued or undervalued?

As of 20 October 2023, PubMatic, Inc. has moved from fair to attractive, indicating a positive shift in its valuation outlook. The company is currently undervalued based on its financial metrics. Key ratios include a Price-to-Earnings (P/E) ratio of 15.2, a Price-to-Sales (P/S) ratio of 6.5, and a Return on Equity (ROE) of 12.4%.
In comparison to peers, Magnite, Inc. has a P/E ratio of 18.0, while The Trade Desk, Inc. stands at 25.0, suggesting that PubMatic is trading at a discount relative to its competitors. This valuation is further supported by recent stock performance, as PubMatic has outperformed the Sensex, reinforcing the attractiveness of its current price point.