Is NetScout Systems, Inc. overvalued or undervalued?

As of 8 September 2025, the valuation grade for NetScout Systems, Inc. has moved from fair to attractive, indicating a shift in perception towards the company's value proposition. The stock appears to be undervalued based on its current metrics, particularly with a P/E ratio of 36, an EV to EBITDA of 15.84, and a Price to Book Value of 1.84. In comparison, its peer Certara, Inc. has a significantly higher P/E ratio of 150.54, while Progress Software Corp. has a more modest P/E of 25.29, highlighting NetScout's relative attractiveness in the market.
Despite some volatility in its longer-term performance, NetScout has outperformed the S&P 500 over the past year with a return of 27.37% compared to the index's 17.14%. This recent performance, combined with its attractive valuation ratios, supports the conclusion that NetScout Systems, Inc. is currently undervalued in the market.