Is Cirrus Logic, Inc. overvalued or undervalued?

As of 12 September 2025, the valuation grade for Cirrus Logic, Inc. has moved from very attractive to attractive, indicating a shift in perceived value. The company appears to be fairly valued based on its current metrics. Key ratios include a P/E ratio of 16, an EV to EBITDA of 10.05, and a PEG ratio of 0.72, suggesting that the stock is reasonably priced relative to its growth potential.
In comparison to peers, Cirrus Logic's P/E ratio of 17.26 is significantly lower than that of Fabrinet at 41.84, while Rambus, Inc. has a P/E of 34.99, indicating that Cirrus Logic may offer better value in its sector. Despite a recent dip in one-year returns of -0.07% compared to the S&P 500's 17.14%, the company has shown strong performance over longer periods, with a three-year return of 63.64% versus the S&P 500's 70.41%. This suggests that while the stock may currently be fairly valued, it has the potential for future growth.