Is Remitly Global, Inc. overvalued or undervalued?

As of 6 August 2025, the valuation grade for Remitly Global, Inc. has moved from risky to expensive, indicating a shift towards a less favorable assessment. The company appears to be overvalued, particularly given its high valuation ratios such as a Price to Book Value of 6.07 and an EV to EBITDA of 258.33, which suggest that the market is pricing in significant growth expectations that may not be realized. Additionally, its negative ROCE of -2.62% and ROE of -0.53% further highlight the company's struggles in generating returns.
In comparison to its peers, Remitly's valuation metrics are notably higher; for instance, Medpace Holdings, Inc. has a P/E of 33.13, while Genpact Ltd. stands at 14.38, both indicating more reasonable valuations within the industry. The recent stock performance shows that Remitly has underperformed against the S&P 500, with a year-to-date return of -23.31% compared to the index's 12.22%, reinforcing the notion that the stock may be overvalued given its current financial performance.