Is Nextracker, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Nextracker, Inc. has moved from fair to attractive, indicating a more favorable assessment. The company appears to be undervalued, supported by a P/E ratio of 17, an EV to EBITDA of 12.02, and a robust ROCE of 73.59%. In comparison to peers, Nextracker's P/E ratio is lower than Nova Ltd.'s 34.30 and Itron, Inc.'s 20.02, suggesting it may offer better value relative to its earnings potential.
Additionally, Nextracker has significantly outperformed the S&P 500, with a year-to-date return of 138.32% compared to the index's 13.30%, reinforcing the attractiveness of its current valuation. Overall, the combination of strong financial metrics and favorable peer comparisons supports the conclusion that Nextracker is undervalued in the current market.