Is Amkor Technology, Inc. overvalued or undervalued?

As of 11 February 2025, Amkor Technology, Inc. has moved from a fair to attractive valuation grade, indicating a shift in its market perception. The company is currently assessed as undervalued, supported by a P/E ratio of 18, an EV to EBITDA of 5.31, and a Price to Book Value of 1.36. These ratios suggest that Amkor is trading at a reasonable price relative to its earnings and book value compared to its peers.
In comparison to its industry peers, First Solar, Inc. has a P/E of 12.18 and an EV to EBITDA of 7.83, while Skyworks Solutions, Inc. shows a P/E of 19.16 and an EV to EBITDA of 9.48. This positions Amkor favorably within its competitive landscape, as it offers a lower valuation multiple than some peers while maintaining solid performance metrics, such as a ROCE of 10.38% and a dividend yield of 3.19%. Although Amkor's recent stock performance has lagged behind the S&P 500 over the past year, its attractive valuation suggests potential for recovery and growth moving forward.