Is SEMrush Holdings, Inc. overvalued or undervalued?

As of 7 May 2025, SEMrush Holdings, Inc. has moved from a fair to an expensive valuation grade. The company appears overvalued based on its key financial ratios, including a P/E ratio of 270, an EV to EBITDA of 65.11, and a Price to Book Value of 5.70. These figures significantly exceed those of its peers, such as ODDITY Tech Ltd., which has a P/E of 37.27 and an EV to EBITDA of 29.23, indicating that SEMrush is trading at a premium compared to more reasonably valued companies in the sector.
In addition to the high valuation ratios, SEMrush's return metrics are concerning, with a 1-year stock return of -30.96%, contrasting sharply with the S&P 500's positive return of 10.26% over the same period. This underperformance further supports the conclusion that SEMrush Holdings, Inc. is overvalued in the current market environment.