Is Euronet Worldwide, Inc. overvalued or undervalued?

As of 7 July 2025, the valuation grade for Euronet Worldwide, Inc. has moved from attractive to very attractive, indicating a strong improvement in its valuation metrics. The company appears undervalued, especially when considering its P/E ratio of 19, which is significantly lower than the peer average of 28.40 for FactSet Research Systems, Inc. and 22.51 for Akamai Technologies, Inc. Additionally, Euronet's EV to EBITDA ratio stands at 9.56, while its peers like FactSet show a much higher ratio of 18.56, further supporting the undervaluation thesis.
In comparison to its peers, Euronet's PEG ratio of 1.26 is favorable against the industry, suggesting growth potential at a reasonable price. The company's ROCE of 35.48% and ROE of 24.16% also highlight its strong operational efficiency compared to its competitors. However, the recent stock performance has been underwhelming, with a year-to-date return of -13.24% compared to the S&P 500's positive return of 12.22%, indicating that while the valuation metrics are attractive, market sentiment has not yet reflected this potential.