Is Benchmark Electronics, Inc. overvalued or undervalued?

As of 10 October 2025, the valuation grade for Benchmark Electronics, Inc. has moved from very expensive to expensive, indicating a shift in perception regarding its valuation. Based on the current metrics, the company appears to be overvalued. The P/E ratio stands at 23, which is significantly lower than its peers such as Littelfuse, Inc. at 30.08 and Advanced Energy Industries, Inc. at 43.33. Additionally, the EV to EBITDA ratio of 8.45 is more favorable compared to Littelfuse's 15.40, but still reflects a premium valuation.
In terms of returns, Benchmark Electronics has underperformed against the S&P 500, with a year-to-date return of -20.77% compared to the S&P 500's 11.41%. This trend of underperformance is consistent over multiple periods, including a one-year return of -16.74% versus the S&P 500's 13.36%. Given these factors, Benchmark Electronics, Inc. is positioned as overvalued within its industry context.