Is Virtus Investment Partners, Inc. overvalued or undervalued?

As of 25 July 2025, the valuation grade for Virtus Investment Partners, Inc. moved from fair to very attractive, indicating a shift towards a more favorable assessment. The company appears undervalued, supported by a P/E ratio of 16, an EV to EBITDA of 7.67, and a Price to Book Value of 2.14. In comparison to peers, Virtus Investment Partners has a more favorable P/E ratio than Victory Capital Holdings, Inc. at 15.76 and is significantly better positioned than TPG, Inc., which is deemed expensive with a P/E of 1024.14.
Despite recent challenges, including a year-to-date return of -11.80% compared to the S&P 500's 12.22%, the long-term outlook remains positive, with a 5-year return of 39.84% against the S&P's 96.61%. This suggests that while short-term performance has lagged, the company's valuation metrics indicate a strong potential for recovery and growth.