Is NETGEAR, Inc. overvalued or undervalued?

As of 21 May 2025, the valuation grade for NETGEAR, Inc. has moved from fair to attractive, indicating a positive shift in its valuation outlook. The company appears to be undervalued, especially considering its current price of $27.93 compared to its 52-week high of $31.55. Key ratios include a Price to Book Value of 1.63, an EV to Sales ratio of 0.73, and a ROCE of -38.35%.
In comparison to peers, NETGEAR's EV to EBITDA stands at -7.7552, while Applied Digital Corp. shows a significantly higher EV to EBITDA of 123.2579, reflecting its risky valuation. Additionally, Grid Dynamics Holdings, Inc. is rated fair with an EV to EBITDA of 27.5092. Notably, NETGEAR has outperformed the S&P 500 over the past year with a stock return of 94.50% compared to the index's 10.26%, reinforcing its attractive valuation narrative.