Is Box, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Box, Inc. has moved from very expensive to attractive, indicating a shift in perception towards the stock's value. Based on the current metrics, Box, Inc. appears to be undervalued, particularly when considering its P/E ratio of 23, which is lower than the peer average of approximately 39.26 for CACI International, and its PEG ratio of 0.33, suggesting strong growth potential relative to its price. Additionally, Box's impressive ROE of 109.81% and ROCE of 87.63% highlight its efficient use of equity and capital.
When compared to peers, Box, Inc. stands out with its attractive valuation, especially against CACI International, which has a P/E of 39.26, and Pegasystems, which has a P/E of 48.13. Despite recent underperformance against the S&P 500 over the past year, where Box returned -0.64% compared to the index's 14.08%, its long-term performance over five years shows a return of 89.60%, closely trailing the S&P 500's 91.29%. This suggests that while short-term volatility exists, the fundamentals indicate a compelling investment opportunity for Box, Inc.