Is Advanced Energy Industries, Inc. overvalued or undervalued?

As of 7 November 2025, the valuation grade for Advanced Energy Industries, Inc. has moved from very expensive to 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 are significantly higher than its peers, such as Littelfuse, Inc. with a P/E of 30.08 and Universal Display Corp. with a P/E of 28.20.
In comparison to the S&P 500, Advanced Energy Industries has shown strong performance with a year-to-date return of 87.43%, significantly outpacing the index's return of 14.40%. However, the company's elevated valuation ratios suggest that it may not sustain this growth in the long term.