Is Paymentus Holdings, Inc. overvalued or undervalued?

As of 5 June 2025, the valuation grade for Paymentus Holdings, Inc. has moved from fair to attractive, indicating a more favorable assessment of its market position. The company is currently considered undervalued, with a P/E ratio of 90, which is significantly higher than its peer Stagwell, Inc. at 24.83, suggesting a premium valuation relative to its peers. Additionally, the EV to EBITDA ratio stands at 47.50, further highlighting the disparity in valuation metrics compared to the industry.
In terms of performance, Paymentus boasts a ROCE of 20.65% and a ROE of 10.14%, which are strong indicators of its operational efficiency and profitability. Compared to its peers, Paymentus's PEG ratio of 1.94 suggests that while it may be growing, it is not excessively overvalued relative to its growth rate. Despite recent underperformance against the S&P 500 over the past month, with a decline of 13.08% compared to a 3.83% increase in the index, the long-term outlook remains positive, as evidenced by a 72.63% return over the past year.