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, including a P/E ratio of 74, a Price to Book Value of 6.93, and an EV to EBIT of 59.39. In comparison to peers, Red Violet's P/E ratio is notably higher than Perfect Corp.'s fair valuation at 32.53, and Bandwidth, Inc.'s risky valuation with a P/E of -42.64.
Despite its strong recent performance, with a year-to-date return of 41.82% compared to the S&P 500's 13.30%, the elevated valuation ratios suggest that the stock may not be justified at its current price level. Overall, the combination of high valuation ratios and the recent grade change supports the conclusion that Red Violet, Inc. is overvalued.