Is N-able, Inc. overvalued or undervalued?

As of 10 March 2025, the valuation grade for N-able, Inc. has moved from expensive to very expensive, indicating a significant deterioration in its valuation outlook. The company is currently considered overvalued. Key ratios highlight this concern, with a P/E ratio of 77, an EV to EBITDA of 18.36, and a Price to Book Value of 1.99, all suggesting that the stock is trading at a premium compared to its earnings and asset values.
When comparing N-able to its peers, ACI Worldwide, Inc. stands out as very attractive with a P/E of 21.22 and an EV to EBITDA of 13.43, while Alarm.com Holdings, Inc. is rated fair with a P/E of 22.41 and an EV to EBITDA of 16.25. These comparisons further reinforce the notion that N-able is overvalued in the current market context. Additionally, N-able's stock has underperformed significantly against the S&P 500, with a one-year return of -49.56% compared to the index's 10.26%, highlighting investor concerns regarding its valuation.