Is Qualys, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Qualys, Inc. moved from fair to attractive, indicating a positive shift in its perceived value. The company appears to be undervalued, supported by a P/E ratio of 28, an EV to EBITDA of 22.19, and a PEG ratio of 2.04. In comparison to peers, Qualys has a lower P/E ratio than Duolingo, Inc. at 104.90 and a more favorable EV to EBITDA than SPS Commerce, Inc. at 27.68.
Despite recent underperformance, with a year-to-date return of -9.71% compared to the S&P 500's 13.30%, the long-term outlook remains promising, as evidenced by a 5-year return of 24.58%. This suggests that while short-term fluctuations may be concerning, the overall valuation metrics indicate that Qualys, Inc. is positioned attractively within its industry.