Is Diodes, Inc. overvalued or undervalued?

As of 7 November 2025, the valuation grade for Diodes, Inc. moved from very expensive to expensive. The company is currently overvalued based on its high P/E ratio of 55, an EV to EBIT of 55.24, and a Price to Book Value of 1.53. In comparison to peers, Fabrinet has a more favorable P/E of 41.84 and EV to EBITDA of 34.55, while Rambus, Inc. presents a significantly lower P/E of 34.99 and an EV to EBITDA of 26.99, highlighting Diodes, Inc.'s relative overvaluation.
Additionally, Diodes, Inc. has underperformed against the S&P 500 across multiple time frames, with a year-to-date return of -28.21% compared to the S&P 500's 14.40%, and a three-year return of -39.29% versus 76.76% for the index. This stark contrast in performance further reinforces the conclusion that Diodes, Inc. is overvalued in the current market environment.