Is Conduent, Inc. overvalued or undervalued?

As of 7 May 2025, Conduent, Inc. has moved from a valuation grade of very attractive to attractive, indicating a shift in its perceived investment quality. The company is currently considered undervalued, with a P/E ratio of 1.25, significantly lower than the industry average of 21.56 for OPENLANE, Inc. Additionally, Conduent's EV to EBITDA stands at 7.70, which is competitive compared to peers like V2X, Inc. at 8.51, suggesting that it is positioned favorably within its sector despite its challenges.
Notably, Conduent's Price to Book Value is at 0.46, reflecting a potential for growth if the market recognizes its underlying assets. However, the company's ROE of 37.50% is impressive, indicating effective management of equity, even as its ROCE is negative at -6.00%. Recent stock performance shows that Conduent has underperformed against the S&P 500 over the past year, with a return of -15.69% compared to the index's 10.26%, which may further support the argument for its undervaluation in the current market context.