Is Stride, Inc. overvalued or undervalued?

As of 31 January 2025, the valuation grade for Stride, Inc. has moved from very attractive to attractive, indicating a shift in perception regarding its investment potential. The company is currently considered fairly valued. Key ratios include a P/E ratio of 24, an EV to EBITDA of 14.00, and a PEG ratio of 0.40, which suggests that while the company has strong growth prospects, its valuation is now more in line with market expectations.
In comparison to peers, Stride, Inc. has a lower P/E ratio than Life Time Group Holdings, Inc. at 26.98 and a similar EV to EBITDA ratio compared to Valvoline, Inc. at 13.34. This positions Stride favorably within its competitive landscape, although it does not stand out as significantly undervalued. Notably, Stride has outperformed the S&P 500 with a year-to-date return of 41.53% compared to the index's 2.44%, reinforcing its strong market performance despite the recent grade adjustment.