Based on the provided data and context, let's analyze whether TOST is overvalued:
Valuation Analysis: TOST trades at a forward P/E of 103.83x and P/S of 3.44x in Q3 2024, indicating relatively high valuation multiples.
Financial Performance: The company has shown improving fundamentals with revenue growing 28% year-over-year and achieving profitability in recent quarters, turning from a Q1 2024 loss of $83M to Q3 2024 profit of $56M.
Market Position: Toast has captured only about 14% of the US restaurant market with 127,000 locations, suggesting significant room for expansion in its addressable market.
Growth-Value Balance: While valuation metrics appear stretched, Toast's improving profitability trajectory and large untapped market opportunity provide some justification for premium multiples.
Conclusion: TOST appears moderately overvalued at current levels given its high earnings multiple, though strong growth and market opportunity partially justify the premium.