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 positive shift in its perceived value. The company appears to be undervalued based on its current metrics, with a P/E ratio of 17, an EV to EBITDA ratio of 12.02, and a robust 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 is trading at a discount relative to its industry competitors.
Nextracker has demonstrated impressive stock performance, with a year-to-date return of 138.32%, significantly outperforming the S&P 500's return of 13.30% over the same period. This strong performance reinforces the notion that the stock is undervalued, particularly in light of its attractive valuation ratios compared to its peers.