Is Cognex Corp. overvalued or undervalued?

As of 31 July 2025, the valuation grade for Cognex Corp. has moved from fair to expensive, indicating that the stock is overvalued. The company exhibits a P/E ratio of 44, a Price to Book Value of 3.52, and an EV to EBITDA of 30.68, all of which are significantly higher than its peers. For instance, Onto Innovation, Inc. has a P/E ratio of 20.49, while Sensata Technologies Holding Plc shows a P/E of 12.23, highlighting Cognex's premium valuation.
In terms of recent performance, Cognex has delivered a year-to-date return of 28.81%, outpacing the S&P 500's return of 12.22% during the same period. However, over the longer term, the stock has underperformed, with a 5-year return of -24.92% compared to the S&P 500's impressive 96.61%. This mixed performance further supports the conclusion that Cognex Corp. is currently overvalued.