Is SEMrush Holdings, Inc. overvalued or undervalued?

As of 4 August 2025, the valuation grade for SEMrush Holdings, Inc. has moved from very expensive to risky, indicating a significant shift in its perceived value. The company appears to be overvalued, particularly when considering its P/E ratio of 270, which is substantially higher than the peer average, and an EV to EBITDA ratio of 65.11, which also suggests high valuation relative to earnings before interest, taxes, depreciation, and amortization. Additionally, the Price to Book Value stands at 5.70, further highlighting the company's inflated valuation metrics.
In comparison to its peers, SEMrush's P/E ratio is notably higher than that of Compass, Inc. at 80.17 and Genius Sports Ltd. at 103.33, both of which are also classified as risky. The company's recent stock performance has been poor, with a year-to-date return of -36.62%, significantly underperforming the S&P 500's gain of 12.22% during the same period. This underperformance reinforces the notion that SEMrush is currently overvalued in the market.