Is Bill Holdings, Inc. overvalued or undervalued?

As of 17 July 2025, the valuation grade for Bill Holdings, Inc. has moved from expensive to attractive, indicating a shift in perception regarding its value. Based on the available metrics, the company appears to be undervalued, particularly when considering its Price to Book Value of 1.21 and an EV to Capital Employed ratio of 1.25. However, the negative P/E ratio and the extremely high EV to EBITDA of 310.11 suggest significant challenges in profitability.
In comparison to its peers, Bill Holdings, Inc. shows a stark contrast with Dynatrace, Inc., which has a P/E of 30.53 and an EV to EBITDA of 57.11, indicating that it is currently trading at a much lower valuation relative to its earnings potential. Similarly, Manhattan Associates, Inc. has a P/E of 59.33, further emphasizing the disparity in valuation metrics within the industry. While Bill Holdings has shown a positive return of 1.68% over the past week compared to the S&P 500's 1.05%, its year-to-date return of -37.92% starkly contrasts with the S&P 500's 12.22%, underscoring the challenges it faces amidst a broader market recovery.