Is Onto Innovation, Inc. overvalued or undervalued?

As of 7 August 2025, the valuation grade for Onto Innovation, Inc. has moved from attractive to fair, indicating a shift in its perceived value. The company appears to be fairly valued at this time. Key valuation ratios include a P/E ratio of 19, an EV to EBITDA of 12.91, and a PEG ratio of 0.31, which suggest that the stock is reasonably priced relative to its earnings growth potential.
In comparison to its peers, Onto Innovation's P/E ratio of 20.49 is lower than that of Cognex Corp., which is considered expensive at 61.49, while Sensata Technologies Holding Plc is also fairly valued with a P/E of 12.23. Notably, Onto Innovation has outperformed the S&P 500 over the 3-year and 5-year periods, with returns of 80.57% and 318.07%, respectively, despite a decline in the year-to-date and 1-year returns.