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 high valuation ratios, including a P/E ratio of 74, a Price to Book Value of 6.93, and an EV to EBITDA of 30.15. In comparison, its peer, Perfect Corp., has a more reasonable P/E ratio of 32.53, while Bandwidth, Inc. shows a negative P/E of -42.64, highlighting the disparity in valuation among competitors.
Given these metrics, Red Violet, Inc. is positioned at a premium compared to its peers, suggesting that investors may be paying excessively for its stock relative to its earnings and book value. Although recent stock return data is not available for a direct comparison with the S&P 500, the high valuation ratios reinforce the notion that the stock is overvalued in the current market environment.