Is Adeia, Inc. overvalued or undervalued?

As of 5 May 2025, Adeia, Inc. has moved from a fair to attractive valuation grade, indicating a shift in its perceived value. The company is currently considered undervalued based on its P/E ratio of 17, which is lower than the industry average, and a PEG ratio of 0.17, suggesting strong growth potential relative to its price. Additionally, Adeia boasts a robust ROE of 23.18% and a ROCE of 20.41%, highlighting its efficient use of equity and capital.
In comparison with peers, Adeia's P/E ratio of 16.95 is significantly more favorable than that of Sabre Corp., which has a negative P/E, and E2open Parent Holdings, Inc., also showing negative earnings. This positions Adeia favorably in the market, especially when considering its EV/EBITDA of 8.78, which is competitive against the industry. Notably, Adeia's stock has outperformed the S&P 500 over the past year, with a return of 22.94% compared to the index's 10.26%, reinforcing the attractiveness of its current valuation.