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, particularly when considering its P/E ratio of 30, which is higher than peers like Skyworks Solutions, Inc. at 20.61 and Qorvo, Inc. at 36.95. Additionally, Rambus has an EV to EBITDA ratio of 22.82, which is also on the higher side compared to the industry standards.
In terms of performance, Rambus has demonstrated strong returns, with a year-to-date return of 72.40% compared to the S&P 500's 14.49%, and a remarkable 5-year return of 482.49% against the S&P 500's 87.83%. This performance suggests that while the stock has been a strong performer, its current valuation metrics indicate that it may not be justified at this level.