Is SEI Investments Co. overvalued or undervalued?

As of 24 April 2025, SEI Investments Co. has moved from a fair valuation to an expensive one. The company is currently considered overvalued based on its financial metrics. The P/E ratio stands at 18, which is higher than the industry average of approximately 17.3, while the EV to EBITDA ratio is 15.05, also above the peer average. Additionally, the PEG ratio of 0.64 suggests that the stock is priced too high relative to its growth potential.
In comparison to its peers, Northern Trust Corp. has a P/E of 11.61, indicating a more attractive valuation, while The Carlyle Group Inc. presents a P/E of 15.35, which is still lower than SEI's current valuation. Notably, SEI's dividend yield is exceptionally high at 117.94%, but this may not be sustainable given its current valuation metrics. Recent stock performance shows that SEI has outperformed the S&P 500 over the past year, returning 28.77% compared to the index's 10.26%, yet this does not mitigate the concerns regarding its current overvaluation.