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 based on its current valuation 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 and an EV to EBITDA of 202.18, while VeriSign, Inc. shows a P/E of 33.05 and an EV to EBITDA of 24.67, indicating that Check Point's ratios are relatively high.
The stock has underperformed against the S&P 500, with a 1-year return of -8.09% compared to the index's 14.08%, and a 5-year return of 50.57%, significantly lower than the S&P 500's 91.29%. This suggests that the market may be pricing in expectations that are not being met, reinforcing the view that Check Point Software Technologies Ltd. is currently overvalued.