Is Ciena Corp. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Ciena Corp. has moved from fair to very expensive. The company is considered overvalued based on its current metrics. Key ratios include a P/E ratio of 96, an EV to EBITDA of 30.35, and a Price to Book Value of 3.70. 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 Corp. has shown impressive stock performance, with a year-to-date return of 101.57%, significantly outpacing the S&P 500's return of 13.30% during the same period. However, despite this strong performance, the high valuation ratios suggest that the stock may not be a sustainable investment at its current price levels.