Is Nova Ltd. overvalued or undervalued?

Oct 19 2025 12:01 PM IST
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As of October 17, 2025, Nova Ltd. is considered undervalued with a favorable valuation outlook, reflected in its competitive P/E ratio of 30 and strong year-to-date return of 67.94%, significantly outperforming the S&P 500's 13.30%.
As of 17 October 2025, the valuation grade for Nova Ltd. has moved from expensive to attractive, indicating a favorable shift in its valuation outlook. Based on the current metrics, Nova Ltd. appears to be undervalued. The company has a P/E ratio of 30, a Price to Book Value of 6.50, and an EV to EBITDA of 26.03, which are competitive compared to its peers. For instance, Cognex Corp. has a significantly higher P/E ratio of 61.49, while Onto Innovation, Inc. shows a lower EV to EBITDA of 13.94.

Additionally, Nova Ltd. has demonstrated strong performance with a year-to-date return of 67.94%, significantly outpacing the S&P 500's return of 13.30% over the same period. This performance reinforces the notion that the stock is currently undervalued relative to its growth potential and market performance.
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