Is Mitek Systems, Inc. overvalued or undervalued?

As of 17 October 2025, Mitek Systems, Inc. has moved from a very attractive to an attractive valuation grade. The company appears to be overvalued given its current P/E ratio of 30, which is significantly higher than the peer average of 27.69 for similar companies like Model N, Inc. and PDF Solutions, Inc., which have P/E ratios of 1182.69 and 983.40, respectively. Additionally, Mitek's EV to EBITDA stands at 13.06, while its peers average around 11.44, further suggesting a premium valuation.
Despite the attractive valuation grade, Mitek's performance has lagged behind the S&P 500, with a year-to-date return of -19.23% compared to the index's 13.30%. This trend continues over longer periods, with a 5-year return of -30.31% versus the S&P 500's 91.29%, indicating that the stock may not be a favorable investment at its current price of 8.99. Overall, Mitek Systems, Inc. is considered overvalued based on the provided metrics and peer comparisons.