Is Lattice Semiconductor Corp. overvalued or undervalued?

As of 10 February 2025, the valuation grade for Lattice Semiconductor Corp. has moved from expensive to very expensive, indicating a significant shift in its perceived market value. The company is currently overvalued, with a P/E ratio of 88, which is substantially higher than its peers, such as First Solar, Inc. at 12.18 and Skyworks Solutions, Inc. at 19.16. Additionally, Lattice's EV to EBITDA stands at 67.74, again far exceeding the industry average, while its Price to Book Value is reported at 9.33.
In comparison to its peers, Lattice Semiconductor's valuation metrics suggest it is not justified by its financial performance, as evidenced by a ROCE of 8.47% and a ROE of 10.60%. The company's stock has underperformed relative to the S&P 500 over the past year, with a return of -15.15% compared to the index's 10.26%. This combination of high valuation ratios and disappointing returns reinforces the conclusion that Lattice Semiconductor is overvalued in the current market environment.