Is Flex Ltd. overvalued or undervalued?

Oct 19 2025 11:58 AM IST
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As of October 17, 2025, Flex Ltd. is considered an attractive investment due to its undervalued status, with a P/E ratio of 20, strong returns of 78.05% over the past year, and favorable comparisons to peers like Teradyne, which has a higher P/E of 37.99.
As of 17 October 2025, the valuation grade for Flex Ltd. has moved from fair to attractive, indicating a positive shift in its market position. Based on the current metrics, the company appears to be undervalued. Key valuation ratios include a P/E ratio of 20, an EV to EBITDA of 10.73, and an EV to Sales of 0.77, which suggest that the stock is trading at a reasonable valuation compared to its earnings and sales.

In comparison to its peers, Flex Ltd. has a P/E ratio of 22.53, while Teradyne, Inc. is considered expensive with a P/E of 37.99. This highlights Flex's relative value within the electronics and appliances industry. Furthermore, the company has demonstrated impressive returns, with a 1Y stock return of 78.05% compared to the S&P 500's 14.08%, reinforcing the attractiveness of its current valuation.
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