Is Credo Technology Group Holding Ltd. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Credo Technology Group Holding Ltd. moved from expensive to fair. Based on the provided metrics, the company appears to be fairly valued. Key ratios include a P/E ratio of 234, an EV to EBITDA of 228.50, and a PEG ratio of 0.81, which indicates growth potential relative to its price.
In comparison to peers, Credo's P/E ratio is higher than the peer average of approximately 202.60, while its EV to EBITDA is also elevated compared to the peer average of 183.61. The company's return performance has been notable, with a YTD return of 113.67% compared to the S&P 500's 13.30%, and a remarkable 1Y return of 281.84% against the S&P 500's 14.08%. This strong performance may support the view that the stock is fairly valued given its growth prospects.