Is CareCloud, Inc. overvalued or undervalued?

As of 6 May 2025, the valuation grade for CareCloud, Inc. has moved from attractive to very attractive, indicating a significant improvement in its perceived value. The company is currently considered undervalued. Key ratios supporting this assessment include a P/E ratio of 9, an EV to EBITDA of 3.32, and a PEG ratio of 0.03, which suggests that the stock is trading at a low valuation relative to its growth potential.
In comparison to peers, CareCloud's P/E ratio of 9.67 is notably lower than that of Beamr Imaging Ltd., which does not qualify due to a negative P/E ratio of -17.38, and CXApp, Inc., which is categorized as risky with a P/E of -1.29. Additionally, CareCloud's ROCE of 23.41% and ROE of 19.32% further highlight its operational efficiency and profitability compared to its peers. Despite a challenging year-to-date performance, where the stock has declined by 31.97% against a 2.44% gain in the S&P 500, the current valuation metrics strongly suggest that CareCloud, Inc. is undervalued in the market.