Is Trimble, Inc. overvalued or undervalued?

As of 19 February 2025, the valuation grade for Trimble, Inc. has moved from attractive to very attractive, indicating a strong positive shift in its valuation outlook. The company is currently considered undervalued, supported by a P/E ratio of 11, a PEG ratio of 0.03, and a ROE of 28.90%. These figures suggest that Trimble is trading at a significant discount relative to its earnings growth potential.
In comparison to its peers, Trimble's P/E ratio of 10.93 is notably lower than PTC, Inc., which has a P/E of 45.58, and Zoom Video Communications, Inc., with a P/E of 22.48. Additionally, Trimble's EV/EBITDA of 24.59 is more favorable compared to PTC's 27.51, reinforcing its undervaluation status. While Trimble's recent stock performance has lagged behind the S&P 500 over longer periods, it has outperformed the index over the past year, with a return of 29.52% compared to the S&P 500's 10.26%.