Is Viavi Solutions, Inc. overvalued or undervalued?

As of 7 November 2025, the valuation grade for Viavi Solutions, Inc. has moved from attractive to expensive, indicating a shift towards overvaluation. The company appears to be overvalued based on its P/E ratio of 132, which is significantly higher than the peer average of approximately 55.5, and an EV to EBITDA ratio of 22.50, also above the industry norms. Additionally, the PEG ratio of 0.23 suggests that the stock may not be justified at its current price given its growth prospects.
In comparison to peers, Pegasystems, Inc. has a P/E of 48.13 and an EV to EBITDA of 31.74, while Box, Inc. shows a more reasonable P/E of 21.43 and an EV to EBITDA of 50.43, highlighting that Viavi's valuation is not supported by its financial metrics. Despite strong recent performance with a 1-month return of 40.79% compared to the S&P 500's 0.21%, the long-term returns over 5 years (37.00% vs. 91.73%) and 10 years (37.00% vs. 220.54%) suggest that the stock may struggle to maintain its current valuation levels.