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, indicating a shift towards a less favorable valuation. The company appears to be overvalued, with a P/E ratio of 41, significantly higher than the peer average of 30.08 for Littelfuse, Inc. and 28.20 for Universal Display Corp. Additionally, the EV to EBITDA ratio stands at 25.01, while peers like Plexus Corp. show a more attractive ratio of 24.95.
In terms of returns, Advanced Energy Industries has outperformed the S&P 500 across multiple periods, with a year-to-date return of 87.43% compared to the S&P 500's 14.40%. This strong performance may suggest investor confidence, but the elevated valuation ratios indicate that the stock may not be a prudent investment at current levels.