Is InterDigital, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for InterDigital, Inc. has moved from fair to attractive, indicating a positive shift in its perceived value. The company appears to be undervalued, supported by a P/E ratio of 39, a PEG ratio of 0.37, and a robust ROE of 41.86%. In comparison to its peers, InterDigital's P/E ratio is lower than that of Digi International, Inc. at 34.86, while it is higher than Harmonic, Inc. at 15.17, suggesting a competitive position within the industry.
InterDigital has significantly outperformed the S&P 500, with a year-to-date return of 89.37% compared to the index's 13.30%, and a one-year return of 135.63% against 14.08% for the S&P 500. This strong performance reinforces the attractiveness of the stock amidst its valuation metrics.