Is Manhattan Associates, Inc. overvalued or undervalued?

As of 9 September 2025, the valuation grade for Manhattan Associates, Inc. has moved from expensive to fair. The company appears fairly valued based on its current metrics. Key ratios include a P/E ratio of 53, a Price to Book Value of 47.76, and an EV to EBITDA of 41.60. In comparison, Dynatrace, Inc. has a lower P/E of 30.53 and an EV to EBITDA of 57.11, while Paycom Software, Inc. shows a P/E of 33.53 and a significantly lower EV to EBITDA of 16.85.
Despite the fair valuation, Manhattan Associates has underperformed against the S&P 500 in the year-to-date and one-year periods, with returns of -19.38% and -19.07%, respectively, compared to the S&P 500's returns of 12.22% and 17.14%. However, over the five-year period, the company has outperformed the S&P 500 with a return of 128.65% versus 96.61%.