Is Sprinklr, Inc. overvalued or undervalued?

As of 3 September 2025, the valuation grade for Sprinklr, Inc. has moved from attractive to very attractive, indicating a positive shift in its valuation outlook. The company appears to be undervalued, particularly when considering its P/E ratio of 18, which is significantly lower than the industry average, and a PEG ratio of 0.13, suggesting strong growth potential relative to its price. Additionally, Sprinklr boasts a high ROCE of 46.51%, reflecting efficient capital use.
In comparison to peers, Sprinklr's P/E ratio of 15.81 is notably lower than Sportradar Group AG's 74.43, which is classified as fair, and DigitalOcean Holdings, Inc.'s risky valuation with a P/E of 23.94. This reinforces the notion that Sprinklr is undervalued relative to its peers. Furthermore, the company's recent stock performance has lagged behind the S&P 500, with a year-to-date return of -6.51% compared to the S&P 500's 12.22%, highlighting a potential opportunity for investors as the market may not fully recognize its value.