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 but still suggesting that the stock is not attractively priced. Based on the current metrics, Diodes, Inc. appears to be overvalued. Key ratios include a P/E ratio of 55, an EV to EBITDA of 13.48, and a Price to Book Value of 1.53, all of which are significantly higher than those of its peers.
In comparison, Fabrinet has a P/E ratio of 41.84 and an EV to EBITDA of 34.55, while Rambus, Inc. shows a more attractive P/E of 34.99 and an EV to EBITDA of 26.99. These ratios suggest that Diodes, Inc. is priced at a premium relative to its peers. Additionally, Diodes, Inc. has underperformed the S&P 500 across multiple time frames, with a year-to-date return of -24.42% compared to the S&P 500's 14.40%, reinforcing the notion of overvaluation.