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

As of 22 August 2025, the valuation grade for RE/MAX Holdings, Inc. has moved from very attractive to attractive, indicating a shift in perception. The company appears to be overvalued based on its current metrics, particularly with a P/E ratio of 22, which is higher than its peer FRP Holdings, Inc. at 91.74, and a price-to-book value of 0.73, suggesting that the stock may not be justified at its current price level. Additionally, the EV to EBITDA ratio stands at 1.96, which is relatively low compared to the industry, reinforcing the notion that the stock may be overvalued.
In terms of peer comparison, RE/MAX Holdings, Inc. has a PEG ratio of 0.04, which is significantly lower than the industry average, indicating potential growth concerns relative to its valuation. The company's recent stock performance shows a 1-week return of 3.13% compared to the S&P 500's 1.05%, but over the longer term, it has underperformed significantly, with a 5-year return of -69.37% against the S&P 500's 96.61%. This stark contrast in returns further emphasizes the overvaluation of RE/MAX Holdings, Inc. in the current market environment.