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 overvalued based on its high P/E ratio of 132, a price-to-book value of 2.89, and an EV to EBITDA ratio of 22.50, which are significantly higher than industry averages. In comparison, peers such as Pegasystems, Inc. have a P/E of 48.13 and an EV to EBITDA of 31.74, while Box, Inc. shows a much lower P/E of 21.43, highlighting the disparity in valuation metrics.
Despite the recent stock performance, where Viavi Solutions outperformed the S&P 500 with a year-to-date return of 76.34% compared to the S&P 500's 14.40%, the elevated valuation ratios suggest that the stock may not be a sustainable investment at its current price. Overall, the combination of high valuation ratios and the recent downgrade in grade supports the conclusion that Viavi Solutions, Inc. is overvalued.