Is Toast, Inc. overvalued or undervalued?

As of 8 May 2025, Toast, Inc. has moved from an expensive to a fair valuation grade. The company appears to be fairly valued at this time. Key ratios include a P/E ratio of 151, an EV to EBITDA ratio of 130.28, and a PEG ratio of 0.78, indicating a relatively attractive growth potential compared to its price.
In comparison to peers, Toast, Inc. has a P/E ratio of 145.27, which is significantly higher than Robinhood Markets, Inc. at 41.60, but lower than Nutanix, Inc. at 836.07, suggesting Toast is more reasonably priced within its competitive landscape. Additionally, Toast's ROCE stands at an impressive 69.57%, reflecting strong operational efficiency. Notably, Toast has outperformed the S&P 500 over the past year with a return of 69.77% compared to the index's 10.26%, reinforcing its favorable valuation outlook.