Is AppFolio, Inc. overvalued or undervalued?

As of 24 April 2025, the valuation grade for AppFolio, Inc. has moved from attractive to fair, indicating a shift in its perceived value. The company appears to be fairly valued based on its current metrics, with a P/E ratio of 40, a Price to Book Value of 17.13, and an EV to EBITDA of 48.83. When compared to peers, AppFolio's P/E ratio is higher than CACI International, Inc. at 39.26 and Parsons Corp. at 35.78, suggesting that AppFolio may be overvalued relative to these competitors.
Despite this, AppFolio has demonstrated strong performance with a 1-year return of 22.17%, outperforming the S&P 500's return of 17.14% over the same period. However, its 10-year return of 96.58% significantly lags behind the S&P 500's 231.64%, indicating that while it has performed well recently, it may not sustain this momentum in the long term. Overall, the combination of high valuation ratios and mixed performance relative to peers suggests that AppFolio is fairly valued at this time.