Is Nova Ltd. overvalued or undervalued?

As of 17 October 2025, Nova Ltd. has moved from an expensive to an attractive valuation grade. The company appears to be undervalued based on its current metrics, with a P/E ratio of 30, a Price to Book Value of 6.50, and an EV to EBITDA ratio of 26.03. In comparison to its peers, Nova Ltd.'s P/E ratio is lower than Cognex Corp.'s 61.49, while Onto Innovation, Inc. shows a more favorable P/E of 20.49, indicating that Nova is competitively positioned within the industry.
The company's strong performance is further highlighted by its impressive ROCE of 33.99% and ROE of 21.56%. Notably, Nova Ltd. has significantly outperformed the S&P 500, with a year-to-date return of 67.94% compared to the index's 13.30%. This strong return reinforces the narrative that Nova Ltd. is undervalued relative to its growth potential and market performance.