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 in perception regarding its market value. Based on the current metrics, the company appears to be overvalued. Key ratios include a P/E ratio of 132, an EV to EBITDA of 22.50, and a PEG ratio of 0.23, which suggests that despite the high earnings multiple, growth expectations may not justify the valuation.
In comparison to peers, Viavi's P/E ratio of 132 is significantly higher than Pegasystems, Inc. at 48.13 and Box, Inc. at 21.43, both of which are considered attractive. This discrepancy highlights the potential overvaluation of Viavi in its industry. Additionally, while Viavi has shown strong recent performance with a YTD return of 79.80% compared to the S&P 500's 14.40%, the long-term returns over 5 and 10 years indicate underperformance relative to the benchmark, suggesting that the current high valuation may not be sustainable.