Is ACI Worldwide, Inc. overvalued or undervalued?

As of 8 May 2025, the valuation grade for ACI Worldwide, Inc. has moved from fair to very attractive, indicating a significant improvement in its valuation outlook. The company appears to be undervalued based on its current metrics. Key ratios include a P/E ratio of 22, an EV to EBITDA of 14.05, and a PEG ratio of 0.25, which suggests strong growth potential relative to its price.
In comparison to peers, ACI Worldwide's P/E ratio of 21.22 is notably lower than Commvault Systems, Inc., which is considered very expensive at a P/E of 92.95. Additionally, ACI's EV to EBITDA of 13.43 is more favorable than Alarm.com Holdings, Inc., which stands at 16.25. Despite recent underperformance against the S&P 500 on a year-to-date basis, ACI's one-year return of 22.16% outpaces the index's 10.26%, reinforcing its attractive valuation.