Is RE/MAX Holdings, Inc. overvalued or undervalued?

As of 1 May 2025, the valuation grade for RE/MAX Holdings, Inc. moved from attractive to very attractive, indicating a significant improvement in its valuation outlook. The company is currently considered undervalued. Key ratios include a P/E ratio of 22, an EV to EBITDA of 1.96, and a PEG ratio of 0.04, which suggests that the stock is priced favorably relative to its growth potential.
In comparison to its peers, RE/MAX Holdings, Inc. has a P/E of 21.09, which is notably better than Redfin Corp. at -7.74 and Marcus & Millichap, Inc. at -173.35, both of which are categorized as risky. Additionally, while the company's ROCE stands at 17.68%, its ROE is relatively low at 3.37%. Despite recent stock performance showing a year-to-date decline of 18.56% compared to a 2.44% gain in the S&P 500, the valuation metrics suggest that RE/MAX Holdings, Inc. presents a compelling investment opportunity at its current price of 8.69.