Is Box, Inc. overvalued or undervalued?

As of 4 March 2025, the valuation grade for Box, Inc. has moved from very attractive to attractive. Based on the analysis, the company appears to be fairly valued. The P/E ratio stands at 23, while the industry average is approximately 22.48, indicating a slight premium. The EV to EBITDA ratio is notably high at 58.44, which suggests that the market may be pricing in significant growth expectations. Additionally, Box, Inc. boasts a PEG ratio of 0.33, reflecting strong growth relative to its valuation.
In comparison to peers, Workiva, Inc. is rated risky with a P/E of -58.35, while ASGN Incorporated is fairly valued with a P/E of 14.13. The high ROE of 109.81% and ROCE of 87.63% for Box, Inc. indicate efficient use of capital, reinforcing its attractiveness despite the elevated valuation ratios. Over the past year, Box, Inc. has outperformed the S&P 500 with a return of 33.09% compared to the index's 10.26%, which supports the notion that the stock is positioned well in the market.