Is Viavi Solutions, Inc. overvalued or undervalued?

As of 28 November 2025, the valuation grade for Viavi Solutions, Inc. has moved from expensive to attractive, indicating a shift towards a more favorable assessment. Based on the provided metrics, the company appears undervalued, particularly with a P/E ratio of 132, a PEG ratio of 0.23, and an EV to EBITDA ratio of 22.50, which suggest that the stock may be priced lower relative to its growth potential compared to peers.
In comparison to its industry peers, Viavi Solutions has a significantly higher P/E ratio than Pegasystems, Inc. at 48.13 and AppFolio, Inc. at 51.16, indicating that it may be undervalued relative to its earnings growth prospects. Additionally, while Viavi's ROCE stands at 4.68% and ROE at 2.19%, these figures are lower than what might be expected in a more robust market environment. Notably, Viavi has outperformed the S&P 500 with a year-to-date return of 77.62% compared to the index's 16.45%, reinforcing the notion of its attractive valuation.