Is Nextracker, Inc. overvalued or undervalued?

As of 17 October 2025, Nextracker, Inc. has moved from fair to attractive in its valuation grade, indicating a positive shift in its perceived value. The company appears to be undervalued, supported by a P/E ratio of 17, an EV to EBITDA of 12.02, and a remarkable ROCE of 73.59%. In comparison, peers such as Nova Ltd. have a significantly higher P/E ratio of 34.30, while Itron, Inc. has a P/E of 20.02, suggesting that Nextracker may offer better value relative to its industry.
The company's recent stock performance has outpaced the S&P 500, with a year-to-date return of 138.32% compared to the S&P 500's 13.30%. This strong performance reinforces the notion that Nextracker is currently undervalued in the market.