Is Nova Ltd. overvalued or undervalued?

As of 4 September 2025, the valuation grade for Nova Ltd. has moved from very attractive to attractive, indicating a shift in market perception. The company appears to be overvalued based on its current valuation ratios, including a P/E ratio of 30, a Price to Book Value of 6.50, and an EV to EBITDA of 26.03. In comparison to peers, Cognex Corp. is considered expensive with a P/E of 61.49, while Onto Innovation, Inc. is fairly valued with a P/E of 20.49, suggesting that Nova Ltd. is trading at a premium relative to some of its competitors.
Despite this overvaluation, Nova Ltd. has shown strong performance with a year-to-date return of 57.83%, significantly outperforming the S&P 500's return of 12.22% over the same period. This robust performance may reflect investor confidence, but the elevated valuation ratios indicate caution moving forward.