Is Figma, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Figma, Inc. has moved from very expensive to attractive, indicating a shift towards a more favorable assessment. Based on the available metrics, Figma appears to be undervalued. The current price stands at 56.84, significantly lower than its 52-week high of 142.92, suggesting potential for recovery. While specific valuation ratios are not provided, the absence of peer comparisons indicates that Figma may be operating in a unique space within the Software Products industry. Notably, the company's recent stock performance shows a 1-week return of -6.91%, contrasting with a positive 1-week return of 1.70% for the S&P 500, yet it outperformed the index over the past month with a return of 3.76% compared to 0.96% for the S&P 500. This mixed performance reinforces the notion that Figma may be undervalued, especially given its recent grade change.