Is Diodes, Inc. overvalued or undervalued?

As of 7 August 2025, the valuation grade for Diodes, Inc. has moved from attractive to very expensive, indicating a shift towards overvaluation. The company is currently considered overvalued, with a P/E ratio of 55, an EV to EBITDA ratio of 13.48, and a Price to Book Value of 1.53. In comparison, peers such as Fabrinet have a P/E ratio of 41.84 and an EV to EBITDA of 34.55, while Rambus, Inc. shows a more favorable P/E of 34.99 and an EV to EBITDA of 26.99.
Despite a strong short-term performance, with a 1-week return of 4.11% compared to the S&P 500's 1.05%, Diodes, Inc. has underperformed over longer periods, with a year-to-date return of -8.30% versus the S&P 500's 12.22%. This trend further supports the conclusion that Diodes, Inc. is overvalued relative to its peers and the broader market.