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 positive shift in its perceived value. The company appears to be undervalued, particularly when considering its P/E ratio of 14, which is significantly lower than its peer CACI International, Inc. at 39.26, and its EV to EBITDA ratio of 10.39 compared to the industry average of 23.43. Additionally, the company's ROE stands at a robust 23.70%, suggesting strong profitability relative to shareholder equity.
In the context of its peers, Science Applications International Corp. shows a more favorable valuation with a P/E of 11.73 compared to EPAM Systems, Inc. at 22.01 and KBR, Inc. at 21.40. Despite recent underperformance, with a 1Y return of -33.95% compared to the S&P 500's 14.08%, the company's attractive valuation metrics suggest potential for recovery and growth.