Is TransUnion overvalued or undervalued?

As of 9 September 2025, the valuation grade for TransUnion has moved from fair to expensive, indicating a shift towards overvaluation. The company appears overvalued based on its P/E ratio of 36, which is higher than its peer MSCI, Inc. with a P/E of 62.31, and its EV to EBITDA ratio of 25.21, compared to MSCI's 42.54. Additionally, the PEG ratio stands at 1.75, suggesting that the stock may not be justified at its current price given its growth prospects.
In comparison to its peers, TransUnion's valuation metrics indicate a premium that may not be warranted, particularly when considering its ROE of 11.07% and ROCE of 9.70%. Furthermore, the stock has underperformed against the S&P 500 over the past year, with a return of -8.58% compared to the index's 17.14%, reinforcing the notion that TransUnion is currently overvalued.