Is ZoomInfo Technologies, Inc. overvalued or undervalued?

As of 3 May 2024, the valuation grade for ZoomInfo Technologies, Inc. has moved from expensive to very expensive. The company is currently overvalued based on its financial ratios and peer comparisons. The P/E ratio stands at 41, while the EV to EBITDA ratio is 18.73, and the Price to Book Value is 1.98, indicating a significant premium compared to its earnings and asset values.
In comparison to its peers, ZoomInfo's P/E ratio of 41.29 is higher than Robinhood Markets, Inc. at 41.60 and significantly lower than Toast, Inc. at 145.27, which is categorized as fair. The company's ROCE is 5.28% and ROE is 4.85%, both of which are relatively low, suggesting inefficiencies in generating returns on capital and equity. Additionally, the stock has underperformed against the S&P 500 over various time frames, including a 1-year return of -20.91% compared to the S&P 500's 10.26%.