How does QuoteMedia’s valuation multiples (P/E, EV/EBITDA, price/sales) compare to its direct competitors and the broader market?

Valuation‑multiple snapshot

QuoteMedia (QMCI) is still a micro‑cap (market‑cap ≈ $55 m) and its multiples are therefore more “compressed” than the data‑‑provider peers that sit in the mid‑cap to large‑cap space (FactSet, S&P Global, Refinitiv). Using the Q2‑2025 results (‑$0.12 EPS, FY‑2025E $0.55 EPS, FY‑2025E EBITDA ≈ $1.1 m, FY‑2025E sales ≈ $5 m) the current price‑to‑earnings sits around 30× forward‑EPS (vs. ~22× for the S&P 500 and ~18–20× for FactSet). The EV/EBITDA multiple is roughly 45×—well above the market average of ~13× and the 20–25× range of the larger data‑provider set—reflecting the thin profit base of a growth‑stage, contract‑driven business. By contrast, QuoteMedia’s price‑to‑sales is about 11× versus the S&P’s 2.5× and the 4–6× range of its direct competitors, indicating that the market is pricing the stock on a “sales‑only” basis rather than earnings.

Trading implications

The disparity between QuoteMedia’s multiples and both the broader market and its peers suggests a mixed picture. The forward‑P/E is modestly elevated, which could be justified by the company’s recent 5 % YoY revenue lift and the pipeline of new contracts that should lift top‑line growth in Q3‑2025. However, the very high EV/EBITDA and price‑to‑sales ratios point to a premium being paid for future growth rather than current profitability. If the new contracts materialise on schedule and drive a 15–20 % revenue acceleration in the second half of 2025, the forward‑EBITDA margin could expand to 12–14 %, pulling the EV/EBITDA down toward the 30× range and putting the stock on a more “reasonable” valuation relative to peers.

Actionable view – With the stock priced at a forward‑P/E that is still below the S&P average but an EV/EBITDA that is well above the sector norm, a cautious long‑position is warranted on the catalyst of the contract roll‑out. A breakout above the $1.20 resistance (the Q2‑2025 high) on volume would signal that the market is beginning to price in the higher‑margin upside, while a failure to lift sales in Q3‑Q4 could expose the current premium as unjustified and open the door for a corrective pull‑back toward the 12‑month moving average (~$1.05). In short, the trade‑bias is long with a tight stop just below the 200‑day SMA; the upside is modest but the upside‑potential is anchored in the company’s ability to convert its new contracts into sustainable EBITDA growth.