Is ASM Technologies overvalued or undervalued?

As of 23 May 2025, the valuation grade for ASM Technologies has moved from expensive to very expensive, indicating a significant increase in perceived valuation. The company is currently considered overvalued based on its high valuation ratios, including a PE ratio of 95.30, an EV to EBITDA of 54.92, and a Price to Book Value of 15.67. These figures suggest that the market has priced the stock at a premium compared to its earnings and book value.
In comparison to its peers, ASM Technologies stands out with a much higher PE ratio than TCS (25.23) and Infosys (24.32), both of which are considered attractive and fair, respectively. The PEG ratio of ASM Technologies at 0.36 also contrasts sharply with TCS's 6.1, indicating that despite its high valuation, the growth expectations may not justify the price. Recent stock performance shows that ASM Technologies has outperformed the Sensex significantly over the past year, with a return of 113.60% compared to the Sensex's 7.59%, but this does not mitigate the concerns regarding its current overvaluation.