Is Rambus, Inc. overvalued or undervalued?

As of 14 November 2025, the valuation grade for Rambus, Inc. has moved from very attractive to attractive, indicating a shift in its perceived value. The company appears to be overvalued based on its current metrics, with a P/E ratio of 30, a price to book value of 5.32, and an EV to EBITDA of 22.82. In comparison, peers such as Skyworks Solutions, Inc. have a P/E of 20.61, while Qorvo, Inc. shows a higher P/E of 36.95, suggesting that Rambus is priced relatively high against its industry.
Despite the recent downturn, Rambus has demonstrated strong performance with a year-to-date return of 80.19%, significantly outperforming the S&P 500's return of 14.49% over the same period. However, the substantial 5-year return of 508.82% compared to the S&P 500's 87.83% indicates that while the stock has had impressive historical performance, its current valuation may not be justified given the recent grade change and relative metrics.