Is Check Point Software Technologies Ltd. overvalued or undervalued?

As of 23 April 2025, the valuation grade for Check Point Software Technologies Ltd. has moved from expensive to fair. The company is currently fairly valued based on its financial metrics. Key ratios include a P/E ratio of 64, an EV to EBITDA of 54.74, and a ROE of 31.02%.
In comparison to its peers, Check Point's P/E ratio is higher than Alphabet, Inc. at 21.13 and Meta Platforms, Inc. at 26.26, indicating a premium valuation relative to these competitors. However, its PEG ratio of 5.56 suggests that growth expectations may not justify the current price. Notably, Check Point has outperformed the S&P 500 with a year-to-date return of 19.64% compared to the index's 2.44%, reinforcing its position in the market despite a high valuation.