Is PDF Solutions, Inc. overvalued or undervalued?

As of 17 July 2025, the valuation grade for PDF Solutions, Inc. has moved from fair to attractive, indicating a more favorable assessment of its market position. The company appears to be overvalued, particularly when considering its P/E ratio of 667, which significantly exceeds the peer average, and an EV to EBITDA ratio of 159.38, suggesting a high valuation relative to earnings before interest, taxes, depreciation, and amortization. Additionally, the Price to Book Value stands at 3.80, further highlighting the premium investors are paying for the stock.
In comparison to its peers, PDF Solutions, Inc. has a notably higher P/E ratio than PROS Holdings, Inc. at -72.87 and TTEC Holdings, Inc. at -43.49, both of which are considered risky investments. The EV to EBITDA ratio of 129.06 for PDF also contrasts sharply with the negative figures of its peers, indicating a substantial valuation discrepancy. Although recent stock performance data is unavailable for a direct comparison with the S&P 500, the significant valuation ratios suggest that investors may be paying too much for PDF Solutions, Inc. relative to its financial metrics.