Is Check Point Software Technologies Ltd. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Check Point Software Technologies Ltd. has moved from attractive to fair, indicating a shift in its perceived value. The company appears overvalued based on its current metrics, with a P/E ratio of 64, a Price to Book Value of 19.75, and an EV to EBITDA of 54.74. In comparison, peers such as CoStar Group, Inc. have a P/E of 381.24, while VeriSign, Inc. shows a more favorable P/E of 33.05, suggesting that Check Point's valuation may not be justified relative to its industry.
Despite a strong ROCE of 68.23% and ROE of 31.02%, the high valuation ratios indicate that the stock may be priced too high for its earnings potential. The company has underperformed against the S&P 500 over the past year, with a return of -8.09% compared to the index's 14.08%, reinforcing the notion that Check Point Software Technologies Ltd. may be overvalued in the current market environment.