Is Certara, Inc. overvalued or undervalued?

As of 8 November 2023, Certara, Inc. has moved from an expensive to a risky valuation grade. The company is currently considered overvalued based on its high P/E ratio of 170, which significantly exceeds the industry average. Additionally, the EV to EBITDA ratio stands at 22.24, and the PEG ratio is at 0.63, suggesting that despite the high valuation, there may be some growth potential relative to its earnings.
In comparison to its peers, Certara's P/E ratio of 153.25 is notably higher than ACI Worldwide, Inc., which is rated very attractive with a P/E of 21.22, indicating a more favorable valuation. Other risky peers like HashiCorp, Inc. and JFrog Ltd. show negative P/E ratios, further emphasizing Certara's overvaluation in the current market context. The company's stock performance has lagged behind the S&P 500, with a 1-year return of -23.31% compared to the index's 10.26%, reinforcing the notion that Certara is overvalued at this time.