Is CSG Systems International, Inc. overvalued or undervalued?

As of 8 July 2025, CSG Systems International, Inc. has moved from fair to attractive in its valuation grade, indicating a more favorable assessment. The company appears to be undervalued based on its current metrics, which include a P/E ratio of 43, a Price to Book Value of 14.85, and an EV to EBITDA ratio of 21.26. In comparison to its peers, FactSet Research Systems, Inc. has a P/E of 28.40, while Akamai Technologies, Inc. shows a P/E of 22.51, suggesting that CSG Systems may be undervalued relative to these competitors.
In terms of recent performance, CSG Systems has outperformed the S&P 500 over various periods, with a year-to-date return of 31.11% compared to the S&P 500's 12.22%. However, over the longer term, its 3-year return of 22.64% lags behind the S&P 500's 70.41%, indicating potential volatility in its stock performance. Overall, the combination of strong valuation ratios and recent stock performance suggests that CSG Systems International, Inc. is undervalued.