Is Yext, Inc. overvalued or undervalued?

As of 8 September 2025, Yext, Inc. has moved from a risky to an expensive valuation grade. The company appears to be overvalued based on its high valuation ratios, including a P/E ratio of 200, an EV to EBITDA of 30.35, and a Price to Book Value of 8.20. In comparison to peers, Yext's P/E ratio significantly exceeds that of Kyndryl Holdings, Inc. at 31.33 and Euronet Worldwide, Inc. at 14.22, indicating a premium valuation that may not be justified by its financial performance.
Despite Yext's strong year-to-date return of 41.35%, which outperformed the S&P 500's 12.22%, the overall trend over the longer term shows a decline of 41.32% over the past five years, contrasting sharply with the S&P 500's significant gain of 96.61%. This suggests that while recent performance has been positive, the long-term outlook remains concerning, reinforcing the conclusion that Yext, Inc. is currently overvalued.