Is Dynatrace, Inc. overvalued or undervalued?

As of 14 May 2025, the valuation grade for Dynatrace, Inc. has moved from fair to attractive, indicating a more favorable assessment of the company's value. The company is currently considered undervalued based on its financial metrics. Key ratios include a P/E ratio of 34, an EV to EBITDA of 67.61, and a PEG ratio of 0.16, which suggests strong growth potential relative to its price.
In comparison to peers, Dynatrace's P/E ratio is lower than PTC, Inc. at 45.58 and significantly more attractive than Bentley Systems, Inc. with a P/E of 59.14. Additionally, Zoom Video Communications, Inc. has a lower P/E of 22.48, reinforcing Dynatrace's competitive positioning in the market. Notably, Dynatrace has outperformed the S&P 500 over the past year, with a return of 22.96% compared to the index's 10.26%, further supporting the view that the stock is undervalued.