Is Fabrinet overvalued or undervalued?

As of 20 May 2025, Fabrinet's valuation grade has moved from attractive to fair, indicating a shift in its perceived value. The company is currently fairly valued based on its financial metrics. Key ratios include a P/E ratio of 27, an EV to EBITDA of 21.90, and a ROCE of 32.43%.
In comparison to its peers, Fabrinet's P/E ratio of 27 is higher than First Solar, Inc. at 12.18, which is rated attractive, but lower than Qorvo, Inc. at 35.16, which is considered expensive. Additionally, the PEG ratio for Fabrinet stands at 1.20, suggesting that its growth prospects are reasonably priced relative to its earnings. Notably, Fabrinet has outperformed the S&P 500 significantly over the past three years, with a return of 243.91% compared to the index's 58.74%.