Is Travelzoo Inc. overvalued or undervalued?

As of 23 October 2024, Travelzoo Inc. has moved from a valuation grade of very expensive to risky. The company appears to be undervalued given its current P/E ratio of 12, which is lower than the peer average of approximately 11.02, and an EV to EBITDA ratio of 8.24, also below the peer average of 7.58. Notably, the PEG ratio stands at 0.60, indicating potential growth at a reasonable price.
In comparison to its peers, CompoSecure, Inc. has a higher P/E of 18.16 and an EV to EBITDA of 15.52, while Deluxe Corp. shows a more attractive valuation with a P/E of 7.11 and an EV to EBITDA of 5.47. Travelzoo's recent stock performance has been mixed, with a year-to-date return of -38.50%, contrasting with the S&P 500's gain of 2.44% over the same period, suggesting that the market may not fully recognize its potential value.