Is Rush Street Interactive, Inc. overvalued or undervalued?

As of 7 July 2025, the valuation grade for Rush Street Interactive, Inc. has moved from attractive to fair, indicating a shift in its perceived value. Based on the current metrics, the company appears to be overvalued. Key ratios include a P/E ratio of 146, a Price to Book Value of 37.68, and an EV to EBITDA of 37.29, which are significantly higher than those of its peers. For instance, MGM Resorts International has a P/E of 11.74 and an EV to EBITDA of 5.95, while Boyd Gaming Corp. shows a P/E of 11.80 and an EV to EBITDA of 8.27, highlighting the relative overvaluation of Rush Street Interactive.
In terms of recent performance, Rush Street Interactive has outperformed the S&P 500 over multiple periods, with a year-to-date return of 58.09% compared to the S&P 500's 12.22%, and a one-year return of 107.76% versus 17.14%. However, despite these strong returns, the high valuation ratios suggest that the stock may be priced for perfection, warranting caution for potential investors.