Is NCR Atleos Corp. overvalued or undervalued?

Sep 20 2025 06:49 PM IST
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As of July 31, 2025, NCR Atleos Corp. is considered overvalued with a P/E ratio of 12 compared to the industry average of 16.83, a low PEG ratio of 0.01, and an EV to EBITDA ratio of 5.91, despite a strong year-to-date return of 16.3%.
As of 31 July 2025, the valuation grade for NCR Atleos Corp. moved from fair to expensive, indicating that the company is overvalued. Key ratios highlight this assessment: the P/E ratio stands at 12, while the industry average P/E is significantly higher at approximately 16.83, suggesting a premium on the stock price relative to earnings. Additionally, the EV to EBITDA ratio is 5.91, which is lower than the peer average of 7.04, further reinforcing the overvaluation perspective.

In comparison to peers, NCR Atleos Corp. exhibits a PEG ratio of 0.01, which is notably low, indicating that growth expectations may not justify the current price. The company's return performance has been strong, with a year-to-date return of 16.3%, outperforming the S&P 500's 12.22%. However, the overall valuation metrics suggest that the stock is priced too high relative to its earnings potential and industry standards.
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