Is FormFactor, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for FormFactor, Inc. has moved from attractive to very expensive, indicating a shift towards overvaluation. The company appears overvalued based on its current P/E ratio of 44, which is significantly higher than peers such as Tower Semiconductor Ltd. at 37.63 and Cirrus Logic, Inc. at 17.26. Additionally, the EV to EBITDA ratio stands at 24.35, which is also elevated compared to its peers, reinforcing the overvaluation assessment.
In terms of return performance, FormFactor has underperformed relative to the S&P 500 over the year, with a return of -4.76% compared to the index's 14.08%. This trend is further reflected in the longer-term returns, where FormFactor's 5-year return of 44.55% lags behind the S&P 500's 91.29%. Overall, the combination of high valuation ratios and poor relative performance suggests that FormFactor, Inc. is currently overvalued.