Is Tradeweb Markets, Inc. overvalued or undervalued?

As of 4 June 2025, the valuation grade for Tradeweb Markets, Inc. has moved from very expensive to expensive, indicating a slight improvement in its valuation perspective. The company is currently considered overvalued based on its high P/E ratio of 60, which significantly exceeds the industry average. Additionally, its EV to EBITDA ratio stands at 31.64, further supporting the view of overvaluation. The PEG ratio is also elevated at 1.78, suggesting that the stock may not be a bargain even when considering its growth potential.
In comparison to its peers, Tradeweb Markets, Inc. has a P/E ratio of 59.47, which is much higher than The Charles Schwab Corp. at 27.45 and CME Group, Inc. at 26.78, both of which are classified as fairly valued. This stark contrast in valuation metrics highlights Tradeweb's premium pricing relative to its competitors. Despite a strong performance over the past year with a return of 32.52% compared to the S&P 500's 10.26%, the current valuation metrics indicate that the stock is not justified at its current price level.