Is Trimble, Inc. overvalued or undervalued?

As of 6 August 2025, Trimble, Inc. has moved from a very attractive to an expensive valuation grade. The company appears to be overvalued, particularly when considering its P/E ratio of 11, which is significantly lower than its peers, such as Fair Isaac Corp. with a P/E of 207.61 and Bentley Systems, Inc. at 63.20. Additionally, Trimble's EV to EBITDA stands at 24.74, while PTC, Inc. is at 29.90, indicating that Trimble is not only lagging behind its peers but also suggests a premium valuation relative to its earnings potential.
In terms of returns, Trimble has performed well year-to-date with a return of 15.57%, outpacing the S&P 500's 12.22%. However, over longer periods, such as the last three years, Trimble's return of 39.16% falls short of the S&P 500's impressive 70.41%. This discrepancy in longer-term performance further supports the conclusion that Trimble, Inc. is currently overvalued in the market.