Is Commvault Systems, Inc. overvalued or undervalued?

As of 7 July 2025, the valuation grade for Commvault Systems, Inc. has moved from expensive to very expensive, indicating a significant increase in perceived overvaluation. The company is currently considered overvalued, with a P/E ratio of 93, a price-to-book value of 25.59, and an EV to EBITDA ratio of 81.37. These ratios suggest that the stock is priced at a premium compared to its earnings and book value, which is further supported by its high ROCE of 323.56% and ROE of 27.45%.
In comparison to its peers, Commvault's P/E ratio is substantially higher than that of BlackLine, Inc., which has a P/E of 35.70, and StoneCo Ltd., which stands at 12.97. This stark contrast highlights the overvaluation of Commvault relative to other companies in the software products industry. Although return data is not available, the lack of positive returns compared to the S&P 500 may further reinforce the perception of overvaluation.