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 significant shift in its perceived value. The company is currently overvalued, with a P/E ratio of 44, an EV to EBITDA ratio of 24.35, and a Price to Book Value of 2.57. In comparison, peers such as Tower Semiconductor Ltd. and Cirrus Logic, Inc. have P/E ratios of 37.63 and 17.26, respectively, suggesting that FormFactor is trading at a premium relative to its industry counterparts.
Despite a strong recent performance with a 1-week return of 10.25% compared to the S&P 500's 1.70%, the longer-term outlook remains concerning, as the company has underperformed the index over the 1-year, 3-year, and 5-year periods. This combination of high valuation ratios and relative underperformance reinforces the conclusion that FormFactor, Inc. is overvalued in the current market environment.