Is Ziff Davis, Inc. overvalued or undervalued?

As of 8 May 2025, the valuation grade for Ziff Davis, Inc. has moved from expensive to very expensive, indicating a significant shift in its perceived value. The company is currently overvalued based on its financial metrics. Key ratios include a P/E ratio of 8, an EV to EBITDA of 4.18, and a Price to Book Value of 0.77, which, while seemingly low, do not compensate for the overall valuation grade.
In comparison to peers, Ziff Davis, Inc. has a P/E ratio lower than IAC, Inc., which stands at 8.83, and an EV to EBITDA significantly lower than IAC's 9.93. Despite its lower PEG ratio of 0.19, the overall metrics suggest that Ziff Davis is not positioned favorably within its industry. Additionally, the company's recent stock performance has lagged significantly behind the S&P 500, with a year-to-date return of -41.83% compared to the S&P's 2.44%, reinforcing the notion of overvaluation.