Is Manhattan Associates, Inc. overvalued or undervalued?

As of 22 April 2025, the valuation grade for Manhattan Associates, Inc. has moved from fair to expensive, indicating that the company is overvalued. The current P/E ratio stands at 53, significantly higher than peers such as PTC, Inc. with a P/E of 45.58 and Zoom Video Communications, Inc. at 22.48. Additionally, the EV to EBITDA ratio for Manhattan is 41.60, compared to PTC's 27.51, further highlighting the premium valuation.
With a PEG ratio of 3.46, Manhattan Associates appears to be priced for growth that may not materialize, suggesting a disconnect between its valuation and potential earnings growth. The company's return metrics are impressive, with a ROCE of 688.56% and ROE of 89.57%, but these figures do not justify the current high valuation levels. Overall, Manhattan Associates, Inc. is overvalued relative to its peers and market conditions, as evidenced by its recent stock performance, which has underperformed the S&P 500 over the past year.