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. The company appears to be overvalued based on its current metrics. Key ratios include a P/E ratio of 41, an EV to EBITDA of 25.01, and a Price to Book Value of 3.72, all of which suggest a premium valuation compared to its peers.
In comparison to its peers, Littelfuse, Inc. has a P/E ratio of 30.08 and an EV to EBITDA of 15.40, while Universal Display Corp. shows a more attractive P/E of 28.20 and an EV to EBITDA of 21.14. These comparisons highlight that Advanced Energy Industries, Inc. is trading at a higher valuation than these competitors. Additionally, the company's stock has significantly outperformed the S&P 500 over multiple periods, with a year-to-date return of 66.03% compared to the S&P 500's 13.30%, reinforcing the perception of overvaluation despite strong recent performance.