Is FormFactor, Inc. overvalued or undervalued?

As of 13 June 2025, the valuation grade for FormFactor, Inc. has moved from very expensive to expensive, indicating a slight improvement in its valuation outlook. The company is currently considered overvalued. Key ratios include a P/E ratio of 44, an EV to EBITDA of 24.35, and a Price to Book Value of 2.57.
In comparison to its peers, FormFactor's P/E ratio of 45.73 is significantly higher than Cirrus Logic, Inc., which has a P/E of 15.99 and is rated attractive, as well as Tower Semiconductor Ltd. with a P/E of 21.98 rated fair. Additionally, FormFactor's return over the past year has been -42.85%, contrasting sharply with the S&P 500's return of 10.26%, further reinforcing the notion that the stock is overvalued in the current market context.