Is AppFolio, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for AppFolio, Inc. has moved from very expensive to fair. The company appears to be fairly valued based on its current metrics. Key ratios include a P/E ratio of 40, an EV to EBITDA of 48.83, and a PEG ratio of 0.37, indicating strong growth potential relative to its price.
In comparison to peers, AppFolio's P/E ratio is higher than CACI International, Inc. at 39.26 and Parsons Corp. at 35.78, suggesting that while AppFolio is fairly valued, it is priced at a premium compared to some of its competitors. Over the past year, AppFolio has returned 16.81%, slightly outperforming the S&P 500's return of 14.08%, which reinforces the notion of its fair valuation amidst a competitive landscape.