Is NETGEAR, Inc. overvalued or undervalued?

As of 30 July 2025, the valuation grade for NETGEAR, Inc. has moved from attractive to very attractive. Based on the current metrics, the company appears to be undervalued. Key ratios include a Price to Book Value of 1.63, an EV to Sales ratio of 0.73, and a notably low EV to EBITDA of -9.42, indicating potential for improvement in profitability.
In comparison to peers, NETGEAR, Inc. has a significantly lower EV to EBITDA ratio of -20.11 when compared to Applied Digital Corp., which has a much higher ratio of 378.66, suggesting that NETGEAR may be undervalued relative to its operational performance. Furthermore, while NETGEAR has delivered a 42.75% return over the past year, the S&P 500 has returned 17.14%, reinforcing the notion that the stock may be undervalued in the current market context.