Is Shift4 Payments, Inc. overvalued or undervalued?

As of 16 June 2025, Shift4 Payments, Inc. has moved from a fair valuation to an expensive rating. The company appears overvalued based on its current financial metrics, with a P/E ratio of 15, a Price to Book Value of 10.39, and an EV to EBITDA of 15.57. In comparison, peers such as ADT, Inc. have a P/E of 10.22 and FTI Consulting, Inc. shows a higher P/E at 19.20, indicating that Shift4 Payments is trading at a premium relative to some of its peers.
The PEG ratio of 0.09 suggests that the company's growth prospects may not justify its current valuation, while a ROE of 71.17% reflects strong profitability but may not be sustainable at such high valuations. Additionally, the company's stock has underperformed the S&P 500 year-to-date, with a return of -9.86% compared to the index's 2.44%, further supporting the conclusion that Shift4 Payments is overvalued at this time.