Is Ciena Corp. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Ciena Corp. has moved from fair to very expensive. Based on the current metrics, the company appears overvalued, with a P/E ratio of 96, a Price to Book Value of 3.70, and an EV to EBIT of 49.53. In comparison, Ubiquiti, Inc. has a more reasonable P/E of 49.59 and an EV to EBITDA of 41.27, indicating that Ciena's valuation is significantly higher than its peers.
Ciena's recent stock performance has been impressive, with a year-to-date return of 101.57%, vastly outperforming the S&P 500's return of 13.30% over the same period. However, despite this strong performance, the high valuation ratios suggest that the stock may not be sustainable at its current price levels.