Is Credo Technology Group Holding Ltd. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Credo Technology Group Holding Ltd. has moved from expensive to fair. The company appears to be fairly valued based on its current metrics, particularly with a P/E ratio of 234, a Price to Book Value of 18.18, and an EV to EBITDA ratio of 228.50. In comparison, a peer like the average company in its industry has a P/E ratio of approximately 202.60, indicating that while Credo is on the higher side, it is not excessively so.
With a PEG ratio of 0.81, Credo suggests potential for growth relative to its price, which is favorable compared to its peers. The company's recent stock performance has been impressive, with a year-to-date return of 113.67%, significantly outperforming the S&P 500's return of 13.30% in the same period, reinforcing the notion that the stock is fairly valued in light of its growth prospects.