Is Certara, Inc. overvalued or undervalued?

Sep 20 2025 06:43 PM IST
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As of August 6, 2025, Certara, Inc. is considered undervalued with a PEG ratio of 0.63 and a high P/E ratio of 170, despite underperforming the S&P 500 with a 1-year return of 7.87%.
As of 6 August 2025, Certara, Inc. has moved from a risky to an attractive valuation grade. The company appears to be undervalued, particularly when considering its PEG ratio of 0.63, which suggests growth potential relative to its price, alongside a P/E ratio of 170 and an EV to EBITDA ratio of 22.24. In comparison to peers, Certara's P/E is significantly higher than ACI Worldwide, Inc. at 25.62, indicating a premium valuation, yet its PEG ratio is more favorable than that of Aurora Innovation, Inc., which has a PEG of 0.00.

Despite the attractive valuation grade, Certara's recent stock performance has lagged behind the S&P 500, with a 1-year return of 7.87% compared to the S&P's 17.14%. This underperformance over the past year may suggest that the market has not fully recognized the company's growth potential, reinforcing the notion that Certara is currently undervalued.
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