Is Qualys, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Qualys, Inc. has moved from fair to attractive, indicating a positive shift in its investment appeal. The company appears to be undervalued based on its current metrics, with a P/E ratio of 28, an EV to EBITDA ratio of 22.19, and a PEG ratio of 2.04. In comparison, its peer Duolingo, Inc. has a significantly higher P/E ratio of 104.90, while ZoomInfo Technologies, Inc. has a lower P/E of 27.49, suggesting that Qualys is positioned favorably within its industry.
Despite its attractive valuation, Qualys has underperformed relative to the S&P 500 over multiple periods, with a year-to-date return of -9.71% compared to the S&P 500's 13.30%. This trend continues in the longer term, with a 3-year return of -3.86% against the S&P 500's 81.19%. Overall, while the valuation metrics suggest an attractive investment opportunity, the recent stock performance indicates caution for potential investors.