Is WM Technology, Inc. overvalued or undervalued?

As of 8 May 2025, WM Technology, Inc. has moved from an attractive to a very attractive valuation grade. The company is currently deemed undervalued based on its financial metrics. The P/E ratio stands at 8, significantly lower than the industry average, while the EV to EBITDA ratio is 3.88, indicating a favorable valuation compared to peers. Additionally, the PEG ratio is 1.05, suggesting that the stock is reasonably priced relative to its growth expectations.
In comparison to its peers, WM Technology, Inc. has a P/E ratio of 7.34, which is lower than EverQuote, Inc. at 19.50 and Angi, Inc. at 14.76. The EV to EBITDA ratio of WM Technology is also more attractive than EverQuote's 14.83, reinforcing its undervalued status. Although the company has a negative capital employed impacting its ROCE, the ROE is notably high at 45.10%, indicating strong profitability. Overall, these metrics suggest that WM Technology, Inc. is undervalued in the current market context.