Is CCC Intelligent Solutions Holdings, Inc. overvalued or undervalued?

As of 7 July 2025, the valuation grade for CCC Intelligent Solutions Holdings, Inc. has moved from fair to attractive, indicating a more favorable assessment of its market position. The company appears to be undervalued, especially when considering its P/E ratio of 274, which is significantly higher than peers like Jack Henry & Associates, Inc. with a P/E of 36.61, and Dayforce, Inc. at 125.57. Additionally, the EV to EBITDA ratio stands at 33.36, while the industry average is much lower, suggesting potential mispricing in the market.
In comparison to its peers, CCC Intelligent Solutions also shows a PEG ratio of 8.56, which is higher than Jack Henry & Associates' PEG of 2.50, further reinforcing the notion of overvaluation relative to its industry. Despite the attractive valuation grade, the company's recent stock performance has lagged behind the S&P 500, with a year-to-date return of -17.73% compared to the index's 12.22%. This discrepancy highlights the potential for price correction as the market reassesses the company's value.