Is Rambus, Inc. overvalued or undervalued?

As of 28 October 2024, Rambus, Inc. has moved from an attractive to a fair valuation grade. The company is currently fairly valued based on its financial metrics. The P/E ratio stands at 30, while the EV to EBITDA ratio is 22.82, and the ROCE is a strong 32.46%.
In comparison to its peers, Rambus has a P/E ratio of 31.66, which is higher than First Solar, Inc. at 12.18 but lower than Qorvo, Inc. at 35.16. Additionally, Skyworks Solutions, Inc. has a fair valuation with a P/E of 19.16, indicating that Rambus is positioned in the middle of its peer group. Notably, Rambus has outperformed the S&P 500 over the past three years with a return of 185.58% compared to 58.74% for the index, reinforcing its competitive standing despite the recent grade change.