Is AppFolio, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for AppFolio, Inc. changed from very expensive to fair, indicating a shift in perception regarding its market value. The company is currently fairly valued based on its valuation ratios, which include a P/E ratio of 40, an EV to EBITDA of 48.83, and a PEG ratio of 0.37. In comparison to peers, CACI International, Inc. has a more attractive P/E of 39.26, while Parsons Corp. shows a fair valuation with a P/E of 35.78.
Despite a recent one-week stock return of 4.73% compared to the S&P 500's 1.70%, AppFolio has underperformed over the year-to-date and one-month periods, with returns of -4.54% and -14.90%, respectively. This suggests that while the stock may be fairly valued now, its recent performance may warrant caution for potential investors.