Is Repay Holdings Corp. overvalued or undervalued?

As of 10 May 2023, the valuation grade for Repay Holdings Corp. has moved from attractive to risky, indicating a significant deterioration in its perceived value. The company is currently considered overvalued. Key ratios reveal a P/E ratio of 50, an EV to EBITDA of 7.54, and a PEG ratio of 0.63, which suggests that despite the high P/E, the growth expectations may not justify the price.
In comparison to its peers, Repay Holdings Corp. has a higher P/E than BrightView Holdings, Inc. at 18.83 and SP Plus Corp. at 25.27, both of which are categorized as very expensive. Additionally, its EV to EBITDA ratio is more favorable than that of BrightView but less favorable than SP Plus, which stands at 11.36. The company's recent stock performance has been poor, with a year-to-date decline of 39.45%, contrasting sharply with the S&P 500's modest gain of 2.44% over the same period, further reinforcing the notion of overvaluation.