Is Navitas Semiconductor Corp. overvalued or undervalued?

Jun 25 2025 09:30 AM IST
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As of May 15, 2023, Navitas Semiconductor Corp. is considered overvalued and risky, with key financial metrics indicating poor profitability and a significant contrast to peers, despite a strong year-to-date stock return of 82.63%.
As of 15 May 2023, the valuation grade for Navitas Semiconductor Corp. has moved from attractive to risky, indicating a shift in perception regarding its financial health. The company is currently considered overvalued based on its financial metrics. Key ratios include a Price to Book Value of 3.47, an EV to Sales ratio of 15.01, and a negative ROCE of -45.34%.

In comparison to its peers, Navitas shows a stark contrast; for instance, Semtech Corp. has a P/E ratio of 89.37, while SMART Global Holdings, Inc. has a more reasonable EV to EBITDA of 8.15. This highlights the challenges Navitas faces in terms of profitability and valuation. Despite a strong year-to-date stock return of 82.63%, the overall financial indicators suggest that the company is not positioned favorably in the market.
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