Is Radware Ltd. overvalued or undervalued?

As of 7 July 2025, the valuation grade for Radware Ltd. has moved from attractive to fair, indicating a shift in its perceived value. The company appears to be overvalued based on its high P/E ratio of 113, significantly above the peer average P/E of 97.77, and an EV to EBITDA ratio of 75.76, which also exceeds the peer average of 64.65. Additionally, the PEG ratio of 0.63 suggests that while growth expectations may be favorable, the current price does not align well with earnings growth potential.
In comparison to its peers, Radware Ltd. shows weaker returns on equity (ROE) at 3.68% and return on capital employed (ROCE) at 5.21%, which are below industry standards. Notably, the company's stock has outperformed the S&P 500 in the short term, with a year-to-date return of 18.02% compared to the S&P 500's 12.22%, but it has significantly lagged over longer periods, particularly in the 3-year and 5-year comparisons. Overall, Radware Ltd. is assessed as overvalued given its high valuation ratios relative to peers and the declining valuation grade.