Is Flex Ltd. overvalued or undervalued?

As of 24 July 2025, the valuation grade for Flex Ltd. has moved from fair to attractive, indicating a positive shift in its perceived value. Based on the analysis, the company appears to be undervalued. Key valuation ratios include a P/E ratio of 20, an EV to EBITDA of 10.73, and a Price to Book Value of 3.65, which suggest that the stock is trading at a reasonable valuation compared to its earnings and asset base.
In comparison to peers, Flex Ltd. has a lower P/E ratio than Teradyne, Inc., which stands at 37.9984, and a significantly lower EV to EBITDA ratio compared to Teradyne's 27.6841, further supporting the attractiveness of Flex Ltd.'s valuation. Notably, Flex Ltd. has outperformed the S&P 500 across multiple periods, with a 1-year return of 86.85% compared to the S&P 500's 17.14%, reinforcing the narrative of its strong performance and potential for continued growth.