Is Vivid Seats, Inc. overvalued or undervalued?

As of 6 May 2025, the valuation grade for Vivid Seats, Inc. has moved from expensive to risky, indicating a shift in perception regarding its market value. The company appears to be overvalued based on its current metrics, with a P/E ratio of 30, an EV to EBITDA of 6.90, and a Price to Book Value of 0.93. In comparison to its peer, Golden Entertainment, Inc., which has a significantly higher P/E ratio of 37.80, Vivid Seats, Inc. is positioned unfavorably.
The company's return performance has been notably poor, with a year-to-date return of -81.29% compared to a 12.22% return for the S&P 500, and a one-year return of -78.92% versus 17.14% for the index. This stark contrast reinforces the notion that Vivid Seats, Inc. is not only struggling in the market but also suggests that it is overvalued relative to its current financial performance and peer benchmarks.