Is ePlus, Inc. overvalued or undervalued?

As of 7 July 2025, ePlus, Inc. has moved from a fair to attractive valuation grade, indicating a positive shift in its perceived value. The company appears undervalued, particularly when considering its P/E ratio of 18, which is lower than the industry average, and an EV to EBITDA ratio of 11.12. Additionally, ePlus boasts a solid ROCE of 18.30%, suggesting efficient capital use.
In comparison with peers, ePlus's P/E ratio of 18.21 is significantly lower than that of Sportradar Group AG, which has a P/E of 74.43, and EverCommerce, Inc. at 47.08. This suggests that ePlus is trading at a more attractive valuation relative to its peers. Notably, while ePlus's stock has underperformed the S&P 500 over the past year with a return of -22.96% compared to 17.14%, it has shown resilience with a 71.08% return over the past three years, slightly outperforming the S&P 500's 70.41%.