Is Power Integrations, Inc. overvalued or undervalued?

As of 7 November 2023, the valuation grade for Power Integrations, Inc. has moved from expensive to very expensive, indicating a significant increase in perceived overvaluation. The company is currently assessed as overvalued. Key ratios include a P/E ratio of 83, an EV to EBITDA ratio of 49.02, and a Price to Book Value of 4.19, all of which are considerably higher than industry norms.
In comparison with peers, Power Integrations, Inc. has a P/E ratio of 82.68, while IPG Photonics Corp. shows a negative P/E of -17.15, and Wolfspeed, Inc. also has a negative P/E of -0.20, highlighting the stark contrast in valuation metrics. The company's recent stock performance has been underwhelming, with a year-to-date return of -11.07%, significantly lagging behind the S&P 500's 2.44% return for the same period, further reinforcing the notion of overvaluation.