Is Viavi Solutions, Inc. overvalued or undervalued?

As of 7 August 2025, the valuation grade for Viavi Solutions, Inc. has moved from attractive to fair. Based on the current metrics, the company appears to be overvalued. The P/E ratio stands at 132, significantly higher than the peer average of approximately 55.50, while the EV to EBITDA ratio is 22.50, which also exceeds many peers, including Pegasystems, Inc. at 31.74. The PEG ratio of 0.23 suggests that the stock may be undervalued relative to its growth, but this is overshadowed by the high P/E ratio.
In comparison to its peers, Viavi Solutions, Inc. has a P/E ratio that is notably higher than both Pegasystems, Inc. (48.13) and AppFolio, Inc. (51.16), indicating that it is priced at a premium despite similar valuation grades. The recent stock performance shows that Viavi has outperformed the S&P 500 over the past year with a return of 49.03% compared to the index's 17.14%, but its long-term performance over three and five years lags significantly behind the index, suggesting potential volatility ahead.