Is CSG Systems International, Inc. overvalued or undervalued?

As of 7 November 2025, the valuation grade for CSG Systems International, Inc. has moved from attractive to fair, indicating a shift in its perceived value. The company appears to be overvalued based on its current metrics, with a P/E ratio of 43, a Price to Book Value of 14.85, and an EV to EBITDA of 21.26. In comparison, FactSet Research Systems, Inc. has a more favorable P/E of 28.40, while Akamai Technologies, Inc. is considered expensive with a P/E of 22.51.
Despite showing strong returns in the short term, such as a 52.81% year-to-date return compared to the S&P 500's 14.40%, the long-term performance reveals a concerning trend, with a 5-year return of 78.51% versus the S&P's 91.73%. This suggests that while CSG Systems has performed well recently, its valuation may not be justified given its relative performance against peers and the broader market.