1. MARKETS
  2. SECTOR : SOFTWARE & SERVICES
  3. INDUSTRY : PACKAGED SOFTWARE
  4. RED VIOLET INC
Red Violet Inc XNAS: RDVT
Expensive Star
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48.70 1.25 (2.63%)
Near 52W High of $51.10
145.0K
XNAS Volume

XNAS 23 Jun, 2025 4:10 PM (EDT)

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Analyze undervaluation/ overvaluation of Red Violet Inc with current and 1 Year Forward PE

INSIGHT
Red Violet Inc is undervalued at both current PE and future earnings estimates
Right Now : Current PE vs 5 year Average PE
Undervalued
Fair price

Based on 5Yr Average PE

101.4
Upside

Current PE versus 5Yr Average PE

108.16 %
1 Year Forward : 5 Yr Average PE & Projected 1Yr Forward EPS*
Undervalued
Fair price

Based on 1Yr Forward EPS

173.2
Upside

5 Yr Average PE & 1Yr Forward EPS

255.62 %
Info: The Red Violet Inc's current PE is 78.49 ,while its 5 year PE average is 163.4. Its forward PE based on analyst estimates is 45.9
Note: The forward P/E ratio (or forward price-to-earnings ratio) is calculated by dividing the current share price of a company by the estimated(1Yr) future (“forward”) earnings per share (EPS) of that company.
generated report

Analyze undervaluation/ overvaluation of Red Violet Inc with historical PE and PBV ratios

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from 24 Jun, 2023 to 23 Jun, 2025

Restated P/E

Sell Zone

61.0% into P/E buy sell zone

% time spent below current P/E
0 20 40 60 80 100
Strong upside potential
Gains already realized

Out of 480 days, Red Violet Inc traded 293 (61.0%) days below the current P/E of on Restated basis.

Originally Reported P/E

Sell Zone

64.2% into P/E buy sell zone

% time spent below current P/E
0 20 40 60 80 100
Strong upside potential
Gains already realized

Out of 480 days, Red Violet Inc traded 308 (64.2%) days below the current P/E of on Originally Reported basis.

Note: This is a reverse percentile score. Values close to 100% are bad while values close to 0% are good. Days when PE is negative are not considered in the analysis
64.2%

Sell Zone

% Days traded below current P/E

78.5
 

Current P/E

60.2
 

Average P/E

26.6
 

Median P/E

173.2
 

Forward 1Y Price

45.9
 

Forward PE

1.1
 

Forward EPS

P/E range Days traded in range % Days traded in range Days traded within & below range % Days traded within & below range
16-19
 35 7.3% 35 7.3%
19-20
 38 7.9% 73 15.2%
20-21
 39 8.1% 112 23.3%
21-24
 65 13.5% 177 36.9%
24-27
 67 14.0% 244 50.8%
27-80
Current P/E is 78.5 Forward PE is 45.94 		74 15.4% 318 66.2%
80-101
 75 15.6% 393 81.9%
101-105
 43 9.0% 436 90.8%
105-248
 44 9.2% 480 100.0%
Total 480 480
61.0%

Sell Zone

% Days traded below current P/E

78.5
 

Current P/E

67.1
 

Average P/E

72.1
 

Median P/E

173.2
 

Forward 1Y Price

45.9
 

Forward PE

1.1
 

Forward EPS

P/E range Days traded in range % Days traded in range Days traded within & below range % Days traded within & below range
17-19
 26 5.4% 26 5.4%
19-20
 38 7.9% 64 13.3%
20-21
 37 7.7% 101 21.0%
21-25
 84 17.5% 185 38.5%
25-72
Forward PE is 45.94 		55 11.5% 240 50.0%
72-85
Current P/E is 78.5 		72 15.0% 312 65.0%
85-101
 79 16.5% 391 81.5%
101-107
 45 9.4% 436 90.8%
107-248
 44 9.2% 480 100.0%
Total 480 480

FAQ

  • What is the PE ratio?

    In its simplest definition, the price-to-earnings ratio (P/E ratio) represents the price an investor pays per dollar of a company's earnings.
    For example, if a company has a P/E ratio of 25, investors are willing to pay USD 25 for each dollar of the company's current earnings. This indicates that investors value the stock at 25 times its current earnings, with an expectation of future earnings growth.
    The P/E ratio fluctuates based on investor sentiment towards a company. Positive sentiment drives the stock price higher, resulting in a higher P/E ratio (investors pay more for each dollar of earnings). Conversely, negative sentiment lowers the P/E ratio (investors pay less for each dollar of earnings).

  • What is the PE buy/sell zone?

    The PE buy/sell zone is calculated based on how many days a stock has traded at its current PE level.
    To do this, we compare the current PE to the stock’s historical PE performance, to find out how often (for how many days in the past) the stock has traded at its current PE value.
    If the stock has usually traded above its current PE level (it’s at a higher PE for the majority of trading days), then the stock is cheaper than usual and in the PE buy zone.
    If the stock has usually traded below its current PE level (it’s at a lower PE for the majority of trading days), then the stock is more expensive than usual and in the PE sell zone.

  • How is the PE buy sell zone useful?

    The PE buy sell zone tells you if a stock’s current PE level is unusually high or low, and if a stock doesn’t typically trade at that level. It helps investors identify stocks that are undervalued or overvalued in terms of their typical PE trading behavior.
    Investors should keep in mind that the buy zone/sell zone is not a foolproof buy or sell signal. For example, the PE of a stock may have fallen substantially due to adverse events or negative news. Or the PE may have risen sharply after the company has won new orders, made an acquisition, announced a buyback, or some other positive event. PE Buy/Sell Zone signals should be looked at in conjunction with other information.

  • Why are the number of days different for Restated and Originally Reported data?

    This can be because of any of the 2 following reasons:
    1. Days when PE is negative are not considered in the analysis. So if only 1 of the Restated or Originally Reported PE is negative and the other is not, then the days will be different
    2. Companies have reported Originally Reported data for limited period.
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