Is Conduent, Inc. overvalued or undervalued?

As of 11 September 2025, the valuation grade for Conduent, Inc. has moved from attractive to expensive, indicating a shift towards overvaluation. The company appears to be overvalued based on its P/E ratio of 1, which is significantly lower than the industry average, and an EV to EBITDA ratio of 7.70, which suggests that the market may not be pricing in the company's potential effectively. Additionally, the Price to Book Value stands at 0.46, further reinforcing the notion that the stock may be overvalued relative to its tangible assets.
In comparison to its peers, Conduent's P/E ratio of 4.72 is notably higher than that of Thoughtworks Holding, Inc., which has a P/E of -25.45, and Chegg, Inc., with a P/E of -22.62. However, it still lags behind Medifast, Inc., which boasts a P/E of 62.80, indicating that while Conduent is perceived as expensive, it is not the most overvalued in its sector. Over the past year, Conduent has underperformed the S&P 500, with a return of -22.11% compared to the index's 17.14%, suggesting that the market may be reacting negatively to its current valuation.