Is Mitek Systems, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Mitek Systems, Inc. has moved from very attractive to attractive, indicating a shift in its perceived value. The company appears to be overvalued based on its current P/E ratio of 30, which is significantly higher than the peer average of approximately 27.69 for Mitek's closest competitor, Model N, Inc. Additionally, Mitek's EV to EBITDA ratio stands at 13.06, which is lower than the industry average, suggesting that while it may be attractive in some respects, its overall valuation metrics do not support a strong investment case at this time.
Mitek's PEG ratio of 0.14 indicates potential growth relative to its price, but this is overshadowed by its recent stock performance, which has lagged significantly behind the S&P 500, with a year-to-date return of -19.23% compared to the index's 13.30%. This underperformance, combined with a return of -30.31% over the past five years, reinforces the notion that Mitek Systems, Inc. is currently overvalued in the market.