Is NetScout Systems, Inc. overvalued or undervalued?

As of 24 October 2025, the valuation grade for NetScout Systems, Inc. has moved from attractive to fair, indicating a shift in its perceived value. The company appears to be fairly valued based on its current metrics, with a P/E ratio of 36, a Price to Book Value of 1.84, and an EV to EBITDA of 15.84. In comparison, peers like Certara, Inc. have a significantly higher P/E ratio of 150.54, while Envestnet, Inc. shows a P/E of 85.75, suggesting that NetScout is positioned more conservatively within its industry.
Despite its fair valuation, NetScout has shown strong recent performance, with a year-to-date return of 23.96% compared to the S&P 500's 15.47%. However, over the longer term, the company's 3-year return of -23.94% starkly contrasts with the S&P 500's impressive 78.85%, highlighting some volatility in its performance. Overall, while the stock is currently fairly valued, its historical performance raises questions about its long-term growth potential.