Is Kulicke & Soffa Industries, Inc. overvalued or undervalued?

As of 6 August 2025, the valuation grade for Kulicke & Soffa Industries, Inc. has moved from expensive to attractive, indicating a shift towards a more favorable assessment. The company appears undervalued, particularly when considering its P/E ratio of 35, which is significantly higher than the peer average of 28.42 for Watts Water Technologies, Inc. and 24.12 for ESAB Corp. Additionally, the PEG ratio of 0.01 suggests that the stock is priced attractively relative to its growth prospects, while the EV to Sales ratio of 2.83 further supports this valuation stance.
In comparison to its peers, Kulicke & Soffa's valuation metrics stand out, especially against Watts Water Technologies, which has a P/E of 28.42, and John Bean Technologies Corp., which is considered risky with a P/E of -236.68. Despite recent underperformance with a year-to-date return of -7.78% compared to the S&P 500's 12.22%, the company's 5-year return of 85.63% reflects strong historical performance, reinforcing the notion that it may be undervalued at its current price of 43.03.