Is New Relic, Inc. overvalued or undervalued?

Jun 25 2025 08:53 AM IST
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As of October 3, 2023, New Relic, Inc. is considered attractive and undervalued with a P/E ratio of 25.4, P/S ratio of 6.1, and P/B ratio of 4.2, trading at a discount compared to peers like Datadog and Splunk, while also outperforming the Sensex.
As of 3 October 2023, New Relic, Inc. has moved from fair to attractive. The company is currently undervalued based on its financial metrics. Key ratios include a Price-to-Earnings (P/E) ratio of 25.4, a Price-to-Sales (P/S) ratio of 6.1, and a Price-to-Book (P/B) ratio of 4.2.

In comparison with peers, Datadog, Inc. has a P/E ratio of 35.2, and Splunk Inc. shows a P/S ratio of 8.5, indicating that New Relic is trading at a discount relative to its competitors. This valuation is further supported by recent stock performance, where New Relic has outperformed the Sensex, reinforcing the attractiveness of its current price.
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