Is Science Applications International Corp. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Science Applications International Corp. has moved from fair to attractive, indicating a more favorable assessment of its market position. The company appears undervalued, especially when considering its P/E ratio of 14, which is significantly lower than the peer average of 11.73, and an EV to EBITDA ratio of 10.39, which also suggests a competitive valuation relative to its peers. Additionally, the company boasts a strong ROE of 23.70%, further reinforcing its attractiveness in the market.
In comparison to its peers, CACI International, Inc. has a much higher P/E ratio of 39.26, while Amdocs Ltd. shows a P/E of 36.47, highlighting that Science Applications International Corp. is positioned favorably within its industry. Despite recent stock performance showing a decline of 33.95% over the past year compared to a 14.08% return for the S&P 500, the long-term outlook remains positive with a 5-year return of 20.13%. This suggests that the current valuation may not fully reflect the company's potential for recovery and growth.