Is Photronics, Inc. overvalued or undervalued?

As of 7 July 2025, the valuation grade for Photronics, Inc. has moved from fair to attractive, indicating a positive shift in its perceived value. The company appears undervalued, supported by a P/E ratio of 7, a Price to Book Value of 1.05, and an EV to EBITDA ratio of 2.13. In comparison, Littelfuse, Inc. has a significantly higher P/E ratio of 30.08, while Universal Display Corp. boasts an EV to EBITDA of 21.14, both suggesting that Photronics is priced more favorably relative to its peers.
Despite a year-to-date return of 6.07%, which lags behind the S&P 500's 12.22%, Photronics has shown impressive long-term performance with a 5-year return of 145.84%, outperforming the S&P 500's 96.61%. This combination of attractive valuation ratios and competitive positioning among peers reinforces the conclusion that Photronics, Inc. is undervalued in the current market.