Is Westwood Holdings Group, Inc. overvalued or undervalued?

As of 24 April 2025, the valuation grade for Westwood Holdings Group, Inc. has moved from expensive to fair. The company appears to be fairly valued based on its current metrics. The P/E ratio stands at 180, which is significantly higher than the industry average, while the EV to EBITDA ratio is 14.88, indicating a relatively high valuation compared to peers. Additionally, the company boasts a remarkable dividend yield of 306.30%, although its ROE is only 0.33%, suggesting inefficiencies in generating returns on equity.
In comparison to its peers, BlackRock Capital Investment Corp. has a much lower P/E ratio of 10.18 and an EV to EBITDA of 5.37, indicating it is considered attractive, while Medallion Financial Corp. shows an even lower P/E of 5.88 and an EV to EBITDA of 0.45, also deemed attractive. Despite the high P/E ratio, Westwood's recent stock performance has outpaced the S&P 500, with a 1-year return of 35.36% compared to the S&P's 10.26%, reinforcing the notion that the stock is currently fairly valued within its market context.