Is Check Point Software Technologies Ltd. overvalued or undervalued?

As of 17 October 2025, Check Point Software Technologies Ltd. has moved from an attractive to a fair valuation grade. The company appears to be overvalued, as indicated by its high P/E ratio of 64, a Price to Book Value of 19.75, and an EV to EBITDA of 54.74. In comparison, peer companies such as VeriSign, Inc. have a P/E of 33.05 and an EV to EBITDA of 24.67, while Gartner, Inc. shows a P/E of 36.52 and an EV to EBITDA of 27.67, suggesting that Check Point's valuation ratios are significantly higher than those of its peers.
In terms of recent performance, Check Point's stock has underperformed against the S&P 500, with a 1-year return of -8.09% compared to the index's 14.08%. This trend reinforces the view that the stock may be overvalued, especially given its elevated valuation ratios relative to industry peers.