Is Vivid Seats, Inc. overvalued or undervalued?

As of 6 May 2025, Vivid Seats, Inc. has moved from a fair to a risky valuation grade. The company is currently considered overvalued, with a P/E ratio of 30, which is significantly higher than its peer Accel Entertainment, Inc. at 22.72. Additionally, Vivid Seats has an EV to EBITDA ratio of 6.90, while AMC Entertainment Holdings, Inc. shows a much higher ratio of 19.97, indicating that Vivid Seats may not be as attractive in terms of earnings relative to its enterprise value.
The company's financial metrics reveal a Price to Book Value of 0.93 and a ROCE of 5.58%, both of which suggest limited profitability and asset efficiency. Furthermore, the stock has underperformed significantly, with a year-to-date return of -60.04%, compared to a modest 2.44% return for the S&P 500. Overall, these factors contribute to the conclusion that Vivid Seats, Inc. is overvalued in the current market environment.