Is Synchronoss Technologies, Inc. overvalued or undervalued?

As of 6 May 2025, the valuation grade for Synchronoss Technologies, Inc. has moved from fair to risky, indicating a deterioration in its investment appeal. The company appears to be overvalued, given its high P/E ratio of 72 compared to peers like Angi, Inc. with a P/E of 14.77, and its EV to EBITDA ratio of 5.37, which is less favorable than the industry average. Additionally, the PEG ratio of 0.66 suggests that the stock may not be justified at its current price given its growth prospects.
In the peer comparison, Synchronoss Technologies, Inc. is categorized as risky alongside companies like The Arena Group Holdings, Inc. and Brightcove, Inc., which also exhibit concerning valuation metrics. Notably, the company's ROE of 3.19% is significantly lower than the industry standard, further supporting the overvaluation narrative. While specific return data is unavailable, the absence of positive returns relative to the S&P 500 reinforces the notion that investors may be better served by exploring alternative investments.