Is Veeva Systems, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Veeva Systems, Inc. has moved from fair to expensive, indicating that the stock is overvalued. The company exhibits a P/E ratio of 60, a Price to Book Value of 7.51, and an EV to EBITDA of 49.65, all of which are significantly higher than its peers. For instance, Electronic Arts, Inc. has a P/E of 38.67 and an EV to EBITDA of 22.71, while Fidelity National Information Services, Inc. shows a P/E of 59.37 but a much lower EV to EBITDA of 11.86.
Despite a strong year-to-date return of 34.95%, which outperformed the S&P 500's 13.30%, the long-term performance reveals a concerning trend, with a 5-year return of -7.36% compared to the S&P 500's impressive 91.29%. This suggests that while Veeva Systems may have had a recent uptick, its overall valuation does not justify the current price levels, reinforcing the conclusion that the stock is overvalued.