Is InterDigital, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for InterDigital, Inc. moved from fair to attractive, indicating a positive shift in its valuation outlook. The company appears to be undervalued, supported by a P/E ratio of 39, a PEG ratio of 0.37, and an impressive ROCE of 91.09%. In comparison to its peers, InterDigital's P/E ratio is notably higher than Digi International, Inc. at 34.86 and significantly lower than ViaSat, Inc., which has a negative P/E ratio.
InterDigital has delivered strong stock performance, with a year-to-date return of 89.37% compared to the S&P 500's 13.30%, and an impressive three-year return of 665.23% against the S&P 500's 81.19%. This performance reinforces the notion that the stock is currently undervalued relative to its growth potential and market performance.