Is InterDigital, Inc. overvalued or undervalued?

As of 31 July 2025, the valuation grade for InterDigital, Inc. has moved from very attractive to attractive, indicating a slight moderation in its perceived value. Based on the current metrics, the company appears to be overvalued. The P/E ratio stands at 39, significantly higher than the peer average of 43.22, while the EV to EBITDA ratio is 27.44, compared to the peer average of 31.92, suggesting that the company is priced at a premium relative to its earnings potential. Additionally, the PEG ratio of 0.37 indicates strong growth expectations, but this is tempered by the high Price to Book Value of 16.22.
In comparison to its peers, ViaSat, Inc. has a P/E of -14.05 and Calix, Inc. shows a P/E of -148.45, both indicating significant challenges, while Digi International, Inc. is considered expensive with a P/E of 34.86. Despite the overvaluation, InterDigital, Inc. has outperformed the S&P 500 across multiple time frames, with a year-to-date return of 75.10% compared to the S&P 500's 12.22%, reinforcing its strong market performance.