Is Sapiens International Corp. NV overvalued or undervalued?

As of 8 August 2025, the valuation grade for Sapiens International Corp. NV has moved from attractive to fair. The company appears to be fairly valued based on its current metrics, with a P/E ratio of 22, a Price to Book Value of 3.76, and an EV to EBITDA of 14.47. In comparison to its peers, Clearwater Analytics Holdings, Inc. has a much lower P/E of 12.49, while Agilysys, Inc. is deemed very expensive with a P/E of 275.52.
Despite the fair valuation, Sapiens has demonstrated strong performance with a year-to-date return of 60.22%, significantly outperforming the S&P 500's 12.22% during the same period. This suggests that while the stock may be fairly valued, its recent performance indicates positive investor sentiment.