Is Flex Ltd. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Flex Ltd. has moved from fair to attractive, indicating a positive shift in its perceived value. The company appears to be undervalued, supported by a P/E ratio of 20, an EV to EBITDA of 10.73, and a Price to Book Value of 3.65. In comparison, its peer Teradyne, Inc. has a significantly higher P/E ratio of 37.9984, suggesting that Flex Ltd. offers a more favorable valuation relative to its industry counterpart.
Flex Ltd. has demonstrated strong performance with a year-to-date return of 61.87%, significantly outpacing the S&P 500's return of 13.30% over the same period. This performance, along with its attractive valuation metrics, reinforces the conclusion that Flex Ltd. is currently undervalued in the market.