Is Conduent, Inc. overvalued or undervalued?

As of 24 October 2025, the valuation grade for Conduent, Inc. has moved from expensive to attractive, indicating a shift in perception towards the stock's value. The company appears undervalued, particularly when considering its P/E ratio of 1, a price-to-book value of 0.46, and an EV to EBITDA ratio of 7.70. In comparison, peers such as Thoughtworks Holding, Inc. have a significantly negative P/E ratio of -25.45, while Medifast, Inc. shows a much higher P/E of 62.80, highlighting Conduent's relative attractiveness in the market.
Despite the recent valuation improvement, Conduent's stock has underperformed compared to the S&P 500, with a year-to-date return of -35.64% versus the S&P 500's 15.47%. This stark contrast in returns over multiple periods reinforces the notion that the stock may be undervalued, providing a potential opportunity for investors looking for value in the current market.