Is ADT, Inc. overvalued or undervalued?

As of 7 July 2025, the valuation grade for ADT, Inc. has moved from expensive to attractive, indicating a shift towards a more favorable assessment. The company appears to be undervalued based on its current metrics. Key valuation ratios include a P/E ratio of 11, an EV to EBITDA of 5.22, and a PEG ratio of 0.74, all suggesting that the stock is trading at a discount relative to its earnings growth potential.
In comparison to its peers, ADT, Inc. has a more attractive P/E ratio of 10.02 compared to Medpace Holdings, Inc. at 33.13 and Booz Allen Hamilton Holding Corp. at 15.81. Additionally, the EV to EBITDA ratio for ADT is significantly lower than that of its peers, reinforcing its undervaluation. Despite a recent 1-week decline of 2.26% compared to a 1.05% gain in the S&P 500, the year-to-date return of 25.18% outpaces the S&P 500's 12.22%, further supporting the case for ADT's attractive valuation.