Is NetScout Systems, Inc. overvalued or undervalued?

As of 3 October 2025, the valuation grade for NetScout Systems, Inc. has moved from attractive to fair. Based on the current metrics, the company appears to be fairly valued. Key ratios include a P/E ratio of 36, an EV to EBITDA of 15.84, and a Price to Book Value of 1.84. In comparison, peers such as Certara, Inc. have a P/E of 150.54, while Progress Software Corp. has a P/E of 25.29, indicating that NetScout's valuation is relatively moderate within its industry.
In terms of performance, NetScout has outperformed the S&P 500 in the 1-week, 1-month, and year-to-date periods, with returns of 2.91%, 7.36%, and 22.58%, respectively, while the S&P 500 returned 1.09%, 4.15%, and 14.18% in the same time frames. However, over the longer term, such as the 3-year and 5-year periods, NetScout's returns have lagged behind the S&P 500, suggesting potential challenges ahead.