Is Bentley Systems, Inc. overvalued or undervalued?

As of 7 July 2025, the valuation grade for Bentley Systems, Inc. has moved from expensive to very expensive, indicating a significant increase in perceived overvaluation. The company is considered overvalued based on its high valuation ratios, including a P/E ratio of 58, a Price to Book Value of 13.75, and an EV to EBITDA of 41.58. In comparison, peers such as ANSYS, Inc. have a P/E ratio of 52.27 and an EV to EBITDA of 33.86, while PTC, Inc. shows a P/E of 49.59 and an EV to EBITDA of 29.90, suggesting that Bentley Systems is trading at a premium relative to its industry.
Despite a year-to-date return of 13.38%, which outperformed the S&P 500's 12.22%, Bentley's longer-term performance has lagged, with 5-year returns of 48.82% compared to the S&P 500's 96.61%. This discrepancy reinforces the notion that the stock may be overvalued given its high multiples and underperformance relative to broader market indices over extended periods.