Is Vimeo, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Vimeo, Inc. has moved from attractive to very expensive, indicating a shift towards overvaluation. The company is currently overvalued, with a P/E ratio of 44, an EV to EBITDA of 38.12, and a Price to Book Value of 2.07. In comparison to peers, Vimeo's P/E ratio is significantly higher than Grindr, Inc. at 43.60 and Rumble, Inc. with a negative P/E, which suggests that Vimeo is trading at a premium relative to its industry counterparts.
Despite this overvaluation, Vimeo has delivered impressive returns, with a year-to-date return of 20.94% compared to the S&P 500's 13.30%, and a one-year return of 58.28% against the S&P 500's 14.08%. These performance metrics highlight a strong market perception, yet the elevated valuation ratios suggest that the stock may not be sustainable at these levels.