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 of 13.48, and a Price to Book Value of 1.53. In comparison, peers such as Fabrinet have a P/E of 41.84 and EV to EBITDA of 34.55, while Rambus, Inc. shows a P/E of 34.99 and an EV to EBITDA of 26.99, suggesting that Diodes, Inc. is trading at a premium relative to its industry peers.
Recent stock performance reveals 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 past three years, the company's return of -21.00% starkly contrasts with the S&P 500's impressive 81.19% return, reinforcing the notion that the stock may be overvalued given its lackluster performance relative to the broader market.