Is Check Point Software Technologies Ltd. overvalued or undervalued?

As of 7 July 2025, Check Point Software Technologies Ltd. has moved from an attractive to a fair valuation grade. The company appears to be overvalued based on its current valuation ratios. The P/E ratio stands at 64, significantly higher than the peer average of 53.34, while the EV to EBITDA ratio is 54.74 compared to the peer average of 45.82. Additionally, the PEG ratio of 5.56 indicates a high valuation relative to its growth prospects.
In comparison with peers, CoStar Group, Inc. has a P/E of 381.24, while VeriSign, Inc. shows a more favorable P/E of 33.05, highlighting the disparity in valuation within the industry. Notably, Check Point's recent stock performance has lagged behind the S&P 500, with a 1-year return of 3.84% compared to the S&P 500's 17.14%, reinforcing the notion that the stock may be overvalued at its current price.