Is Yext, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Yext, Inc. has moved from fair to expensive, indicating a shift towards overvaluation. The company appears to be overvalued based on its P/E ratio of 200, a Price to Book Value of 8.20, and an EV to EBITDA ratio of 30.35. In comparison with peers, Kyndryl Holdings, Inc. has a much lower P/E of 31.33, and Euronet Worldwide, Inc. shows a significantly lower EV to EBITDA of 7.25, highlighting Yext's relative overvaluation in the commercial services sector.
Despite a strong year-to-date return of 30.03%, which outperformed the S&P 500's 13.30%, the longer-term performance is concerning, with a 5-year return of -53.41% compared to the S&P 500's impressive 91.29%. This suggests that while Yext may have had a brief period of strong performance, its overall valuation and returns do not align favorably with its peers or the broader market trends.