Is Agilysys, Inc. overvalued or undervalued?

As of 30 June 2025, Agilysys, Inc. moved from expensive to very expensive, indicating a significant deterioration in its valuation grade. The company is overvalued, with a P/E ratio of 161, a Price to Book Value of 14.88, and an EV to EBITDA of 118.06, all of which are substantially higher than industry norms. In comparison, Clearwater Analytics Holdings, Inc. has a P/E of 12.49 and an EV to EBITDA of 115.40, showcasing a stark contrast in valuation metrics.
Despite a strong performance over the long term, with a 5-year return of 318.92% compared to the S&P 500's 96.61%, Agilysys has struggled recently, posting a year-to-date return of -18.46% against the S&P 500's 12.22%. This underperformance, combined with its elevated valuation ratios, reinforces the conclusion that Agilysys is overvalued in the current market environment.