Is ePlus, Inc. overvalued or undervalued?

As of 7 February 2025, the valuation grade for ePlus, Inc. has moved from fair to attractive, indicating a positive shift in its perceived value. The company is currently considered undervalued, with a P/E ratio of 18, which is significantly lower than the industry average, suggesting that the stock may be trading at a discount relative to its earnings potential. Additionally, ePlus has an EV to EBITDA ratio of 11.12 and a Price to Book Value of 2.01, both of which further support the attractiveness of the valuation.
In comparison to its peers, ePlus, Inc. has a more favorable valuation profile than Sportradar Group AG, which is deemed expensive with a P/E of 110.21, and EverCommerce, Inc., categorized as risky with a P/E of 48.42. The company's return performance has also been noteworthy, particularly over the past five years, where it outperformed the S&P 500 with a return of 113.07% compared to the index's 92.42%. This combination of strong financial ratios and favorable peer comparisons reinforces the conclusion that ePlus, Inc. is undervalued in the current market.