Is Diodes, Inc. overvalued or undervalued?

As of 7 November 2025, the valuation grade for Diodes, Inc. has moved from very expensive to expensive, indicating a slight improvement in its valuation perception. The company appears to be overvalued based on its current metrics, with a P/E ratio of 55, an EV to EBIT of 55.24, 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 more attractive P/E of 34.99 and EV to EBITDA of 26.99.
Diodes, Inc. has significantly underperformed relative to the S&P 500, with a year-to-date return of -28.21% compared to the index's 14.40%, highlighting concerns about its current valuation amidst broader market performance.