Is Sapiens International Corp. NV overvalued or undervalued?

As of 14 April 2025, the valuation grade for Sapiens International Corp. NV has moved from attractive to fair. The company is currently fairly valued based on its financial metrics. Key ratios include a P/E ratio of 22, an EV to EBITDA of 14.47, and a ROE of 16.85%.
In comparison to its peers, Sapiens has a P/E ratio that is higher than Clearwater Analytics Holdings, which stands at 12.55, but lower than Agilysys, which is significantly overvalued at 156.26. The PEG ratio of Sapiens at 1.36 indicates a reasonable growth expectation relative to its price, while its dividend yield of only 0.10% suggests limited returns from dividends. Notably, Sapiens has underperformed the S&P 500 over the past year, with a return of -14.07% compared to the index's 10.26%, reinforcing the notion that the stock is currently fairly valued.