Is Informatica, Inc. (California) overvalued or undervalued?

As of 6 August 2025, the valuation grade for Informatica, Inc. has moved from attractive to risky, indicating a shift in perception regarding its investment potential. The company appears overvalued based on its high valuation ratios, including a P/E ratio of 1604, an EV to EBITDA of 29.80, and a Price to Book Value of 3.68. In comparison, peers such as Qualys, Inc. have a more reasonable P/E ratio of 25.97 and an EV to EBITDA of 21.01, while Duolingo, Inc. is considered very expensive with a P/E of 104.90.
Informatica's recent stock performance has lagged behind the S&P 500, with a year-to-date return of -4.24% compared to the index's 12.22%, and a one-year return of -0.88% versus 17.14% for the S&P 500. This underperformance further supports the conclusion that Informatica is overvalued in the current market environment.