Is Benchmark Electronics, Inc. overvalued or undervalued?

As of 31 January 2025, Benchmark Electronics, Inc. has moved from an attractive to a fair valuation grade. The company is currently fairly valued based on its financial metrics. The P/E ratio stands at 23, while the industry average is approximately 22.81, indicating a slight premium. Additionally, the EV to EBITDA ratio is 8.45, which is competitive compared to peers like Aehr Test Systems, which has a much lower P/E of 14.79 and a significantly higher EV to EBITDA of 110.03.
In terms of key ratios, Benchmark's Price to Book Value is 1.24, and its ROCE is 10.52%. The company's dividend yield is 1.77%, which adds some appeal for income-focused investors. Despite a recent underperformance compared to the S&P 500, with a year-to-date return of -17.11% versus 2.44% for the index, the overall valuation suggests that the stock is fairly positioned in the market.