Is GLOBALFOUNDRIES, Inc. overvalued or undervalued?

As of 11 February 2025, the valuation grade for GLOBALFOUNDRIES, Inc. has moved from expensive to risky, indicating a shift in perception regarding its market position. The company is currently assessed as overvalued. Key ratios include a P/E ratio of 28, an EV to EBITDA of 8.49, and a Price to Book Value of 1.89, which suggest that the stock is trading at a premium compared to its earnings and book value.
In comparison to peers, Texas Instruments has a P/E of 70.38, while QUALCOMM shows a more attractive P/E of 15.17, highlighting that GLOBALFOUNDRIES is significantly more expensive relative to these competitors. Additionally, the company's recent stock performance has lagged behind the S&P 500, with a year-to-date return of -11.33% compared to the index's 2.44%. This further reinforces the notion that GLOBALFOUNDRIES is currently overvalued in the market.