Is Nextracker, Inc. overvalued or undervalued?

As of 3 October 2025, the valuation grade for Nextracker, Inc. has moved from attractive to fair, indicating a shift in its perceived value. Based on the current metrics, the company appears fairly valued. Key ratios include a P/E ratio of 17, an EV to EBITDA of 12.02, and a Price to Book Value of 5.29. In comparison, peers such as Nova Ltd. have a higher P/E ratio of 34.30, while Onto Innovation, Inc. has a similar EV to EBITDA of 13.94, suggesting that Nextracker is positioned competitively within its industry.
Nextracker has demonstrated strong performance with a year-to-date return of 111.14%, significantly outperforming the S&P 500's return of 14.18% during the same period, reinforcing its attractiveness despite the recent grade change.