Is Agilysys, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Agilysys, Inc. has moved from expensive to very expensive, indicating a significant increase in perceived overvaluation. The company appears to be overvalued, particularly highlighted by a P/E ratio of 161, an EV to EBITDA of 118.06, and a Price to Book Value of 14.88. In comparison, Clearwater Analytics Holdings, Inc. has a much lower P/E ratio of 12.49, while EverCommerce, Inc. shows an EV to EBITDA of 14.12, both suggesting that Agilysys is trading at a premium relative to its peers.
Despite a strong historical performance, with a 5-year return of 317.29% compared to the S&P 500's 91.29%, recent returns have been lackluster, with a year-to-date decline of 16.42% versus the S&P 500's gain of 13.30%. This divergence reinforces the notion that Agilysys is currently overvalued in the market.