Is Shutterstock, Inc. overvalued or undervalued?

As of 2 May 2025, the valuation grade for Shutterstock, Inc. has moved from expensive to very attractive. Based on the current metrics, the company appears to be undervalued. The P/E ratio stands at 16, which is favorable compared to the peer average of 12.25, while the EV to EBITDA ratio is 5.32, indicating a strong valuation relative to earnings before interest, taxes, depreciation, and amortization. Additionally, the Price to Book Value is 1.22, suggesting that the stock is trading at a reasonable price relative to its book value.
In comparison to its peer, Perion Network Ltd., which has a significantly negative P/E ratio of -121.28, Shutterstock's valuation metrics are considerably more attractive. The company's recent stock performance has been underwhelming, with a year-to-date return of -28.01% compared to the S&P 500's positive return of 12.22%, reflecting a stark contrast in performance over the same period. This suggests that while the stock may be undervalued based on fundamental metrics, market sentiment has not yet aligned with its intrinsic value.