Is Advanced Energy Industries, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Advanced Energy Industries, Inc. moved from fair to very expensive. This indicates that the company is overvalued. Key valuation ratios include a P/E ratio of 41, an EV to EBITDA of 25.01, and a Price to Book Value of 3.72. In comparison, Littelfuse, Inc. has a P/E of 30.08, while Universal Display Corp. boasts a more attractive P/E of 28.20, highlighting Advanced Energy's relative overvaluation.
Despite its high valuation, Advanced Energy has shown strong performance, with a year-to-date return of 66.03% compared to the S&P 500's 13.30%, and a one-year return of 72.88% against the S&P 500's 14.08%. However, the significant gap in valuation ratios suggests that the current price may not be justified by its financial metrics.