Is Viavi Solutions, Inc. overvalued or undervalued?

As of 21 November 2025, the valuation grade for Viavi Solutions, Inc. has moved from attractive to expensive, indicating a shift towards overvaluation. The company is currently considered overvalued, with a P/E ratio of 132, a Price to Book Value of 2.89, and an EV to EBITDA ratio of 22.50. In comparison, peers like Pegasystems, Inc. have a P/E of 48.13 and an EV to EBITDA of 31.74, while AppFolio, Inc. shows a P/E of 51.16 and an EV to EBITDA of 62.77, suggesting that Viavi's valuation metrics are significantly higher than those of its peers.
Despite a strong year-to-date return of 58.02%, which outperformed the S&P 500's 12.26%, the long-term performance shows a decline, with a 5-year return of only 16.62% compared to the S&P 500's 85.61%. This disparity reinforces the notion that Viavi Solutions, Inc. is currently overvalued relative to its performance and peer group.