Is NVE Corp. overvalued or undervalued?

As of 7 May 2025, NVE Corp. has moved from a fair to very attractive valuation grade. The company is currently considered undervalued, with a P/E ratio of 23, an EV to EBITDA ratio of 20.15, and a remarkable ROCE of 39.37%. In comparison to its peers, NVE Corp. stands out with a significantly lower P/E ratio than Semtech Corp., which has a P/E of 89.37, and a more favorable EV to EBITDA ratio than many of its risky counterparts.
Despite recent stock performance lagging behind the S&P 500, with a year-to-date return of -13.14% compared to the S&P 500's 2.44%, the strong financial ratios suggest that NVE Corp. is well-positioned for future growth. The high dividend yield of 551.75% further enhances its attractiveness to investors. Overall, the combination of solid financial metrics and a favorable valuation grade indicates that NVE Corp. is currently undervalued in the market.