Is Red Violet, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Red Violet, Inc. has moved from fair to very expensive, indicating a significant shift in its perceived value. The company appears overvalued based on its current metrics, with a P/E ratio of 74, a Price to Book Value of 6.93, and an EV to EBITDA ratio of 30.15. In comparison, peers such as Perfect Corp. have a P/E of 32.53, highlighting the relative overvaluation of Red Violet.
The stock has demonstrated strong performance with a year-to-date return of 41.82%, significantly outperforming the S&P 500's return of 13.30% over the same period. However, the substantial valuation ratios suggest that investors may be pricing in excessive growth expectations, which could pose risks if future performance does not meet these high standards.