Is Box, Inc. overvalued or undervalued?

As of 7 July 2025, Box, Inc. has moved from fair to attractive in its valuation grade, indicating a more favorable outlook. The company appears to be undervalued, especially when considering its P/E ratio of 23, which is lower than the peer average of approximately 39.26 for CACI International, Inc., and its PEG ratio of 0.33, suggesting strong growth potential relative to its price. Additionally, Box's ROE stands at an impressive 109.81%, further supporting its attractiveness compared to peers like Pegasystems, Inc., which has a significantly higher P/E ratio of 48.13.
In terms of recent performance, Box, Inc. has underperformed against the S&P 500 over the past year, with a return of -2.39% compared to the S&P's 17.14%. However, over the five-year period, Box has shown a return of 80.95%, which is still notable, albeit lower than the S&P 500's 96.61%. This mixed performance, combined with its attractive valuation metrics, suggests that Box, Inc. may present a compelling investment opportunity.