Is NetScout Systems, Inc. overvalued or undervalued?

As of 14 November 2025, the valuation grade for NetScout Systems, Inc. moved from very attractive to attractive. The company appears to be overvalued based on its current metrics. The P/E ratio stands at 36, which is significantly higher than the peer average of 40.14 for comparable companies like Certara, Inc. and Envestnet, Inc. The EV to EBITDA ratio is 15.84, again above the peer average of 15.61, indicating a premium valuation relative to its earnings potential. Additionally, the PEG ratio of 2.66 suggests that the stock may be overvalued given its growth prospects.
In comparison to its peers, NetScout's return metrics are not available, but the stock's performance should be evaluated against broader market trends, such as the S&P 500. Overall, the combination of high valuation ratios and the recent grade change suggests that NetScout Systems, Inc. is overvalued in the current market environment.