Is Diodes, Inc. overvalued or undervalued?

As of 17 October 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 more favorable P/E ratio of 41.84, while Rambus, Inc. stands at 34.99, highlighting the relative overvaluation of Diodes, Inc.
Recent performance shows that Diodes, Inc. has underperformed against the S&P 500, with a year-to-date return of -11.59% compared to the S&P 500's 13.30%. Over the last three years, the company has experienced a decline of 21.00%, while the S&P 500 has gained 81.19%, further reinforcing the notion that Diodes, Inc. is currently overvalued.