Is Commvault Systems, Inc. overvalued or undervalued?

As of 29 April 2025, the valuation grade for Commvault Systems, Inc. has moved from attractive to very expensive. The company is currently overvalued, as indicated by its high P/E ratio of 93, an EV to EBIT of 89.74, and an EV to EBITDA of 81.37. These ratios significantly exceed those of its peers, such as BlackLine, Inc. with a P/E of 34.03 and an EV to EBITDA of 45.42, highlighting the premium at which Commvault is trading.
In comparison to the broader market, Commvault's recent stock performance shows a YTD return of 14.08%, which outpaces the S&P 500's 2.44%. However, the substantial valuation metrics suggest that investors may be overestimating the company's future growth potential, making it a risky investment at this time.