Is Shutterstock, Inc. overvalued or undervalued?

As of 2 May 2025, the valuation grade for Shutterstock, Inc. has moved from expensive to very attractive, indicating a significant improvement in its perceived value. The company is currently considered undervalued. Key ratios include a P/E ratio of 16, an EV to EBITDA of 5.32, and a Price to Book Value of 1.22, which suggest that the stock is trading at a reasonable valuation compared to its earnings and asset value.
In comparison to its peers, Shutterstock's P/E ratio of 16.38 is lower than Cargurus, Inc. at 17.85, which is classified as very expensive, and higher than Yelp, Inc. at 15.42, which is rated as fair. This positioning reinforces the argument for Shutterstock's undervaluation. Additionally, the company's recent stock performance has lagged behind the S&P 500, with a year-to-date return of -39.60% compared to the index's 2.44%, further emphasizing the potential for recovery and value realization in the stock.