Is Fabrinet overvalued or undervalued?

As of 22 August 2025, the valuation grade for Fabrinet has moved from attractive to fair. The company appears to be fairly valued based on its current metrics, with a P/E ratio of 27, an EV to EBITDA of 21.90, and a PEG ratio of 1.20. In comparison to its peers, Skyworks Solutions has a P/E of 20.61, while Qorvo, Inc. shows a P/E of 36.95, indicating that Fabrinet's valuation is in line with the industry, albeit on the higher side.
Fabrinet has shown strong performance with a year-to-date return of 71.92%, significantly outperforming the S&P 500's return of 12.22% over the same period. This robust performance may suggest that the market has already priced in much of the company's growth potential, reinforcing the fair valuation assessment.