Is Jabil, Inc. overvalued or undervalued?

As of 20 March 2025, the valuation grade for Jabil, Inc. has moved from attractive to expensive, indicating a shift in perception regarding its market value. The company is currently overvalued based on its high P/E ratio of 63, which significantly exceeds the industry average P/E of approximately 40.59 for Amphenol Corp., a peer that is considered fairly valued. Additionally, Jabil's EV to EBITDA ratio stands at 20.88, which is also on the higher side compared to Amphenol's 26.96, suggesting that Jabil is trading at a premium relative to its earnings potential.
Notably, Jabil's return on equity (ROE) is an impressive 48.25%, reflecting strong profitability, yet this does not fully compensate for its elevated valuation metrics. The company's recent stock performance has outpaced the S&P 500, with a year-to-date return of 44.79% compared to the index's 2.44%, further underscoring the market's optimistic outlook. However, given the high valuation ratios and the recent grade change, Jabil, Inc. appears to be overvalued in the current market environment.