Is OneSpan, Inc. overvalued or undervalued?

As of 5 August 2025, the valuation grade for OneSpan, Inc. has moved from very attractive to attractive. Based on the current metrics, the company appears to be undervalued. The P/E ratio stands at 11, which is significantly lower than the industry average, while the EV to EBITDA ratio is 9.16, indicating potential for growth relative to its earnings before interest, taxes, depreciation, and amortization. Additionally, the PEG ratio is exceptionally low at 0.01, suggesting that the stock is priced attractively in relation to its expected growth rates.
In comparison to peers, OneSpan, Inc. has a P/E of 9.89, which is much lower than Model N, Inc. at 1182.69, and PDF Solutions, Inc. at 983.40, both of which are considered expensive. The company also boasts a strong ROCE of 40.06% and an ROE of 26.35%, indicating efficient use of capital and solid profitability. Despite a challenging year-to-date return of -11.97% compared to the S&P 500's 12.22%, OneSpan's 3-year return of 72.15% outperformed the benchmark's 70.41%, reinforcing its potential as an undervalued investment.