Is Advanced Energy Industries, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Advanced Energy Industries, Inc. has moved from fair to very expensive, indicating a significant shift in its perceived value. The company appears overvalued based on its current metrics, with a P/E ratio of 41, a Price to Book Value of 3.72, and an EV to EBITDA of 25.01. In comparison to peers, Littelfuse, Inc. has a P/E of 30.08, while Universal Display Corp. boasts a more attractive P/E of 28.20, underscoring Advanced Energy's relatively high valuation.
Despite its overvaluation, Advanced Energy has shown impressive returns, outperforming the S&P 500 with a year-to-date return of 66.03% compared to the index's 13.30%. This strong performance may reflect investor optimism, but the elevated valuation ratios suggest caution for potential investors.