Is Flex Ltd. overvalued or undervalued?

Oct 21 2025 12:03 PM IST
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As of October 17, 2025, Flex Ltd. is considered an attractive investment due to its undervalued status, evidenced by a P/E ratio of 20, strong performance with a year-to-date return of 61.87%, and a significant 5-year return of 504.59%, especially when compared to its peer Teradyne, Inc. with a much higher P/E ratio of 37.9984.
As of 17 October 2025, the valuation grade for Flex Ltd. moved from fair to attractive, indicating a positive shift in its market standing. The company appears 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. may offer better value relative to its earnings potential.

Flex Ltd. has demonstrated strong performance, with a year-to-date return of 61.87% compared to the S&P 500's 13.30%, and an impressive 5-year return of 504.59% against the S&P 500's 91.29%. This performance reinforces the notion that Flex Ltd. is positioned favorably in the market, further supporting its undervalued status.
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