Is Rambus, Inc. overvalued or undervalued?

As of 28 November 2025, the valuation grade for Rambus, Inc. has moved from very attractive to attractive, indicating a shift in perception. The company appears to be overvalued based on its current P/E ratio of 30, which is significantly higher than the peer average, particularly when compared to Skyworks Solutions, Inc. with a P/E of 20.61 and Qorvo, Inc. at 36.95. Additionally, Rambus has a Price to Book Value of 5.32 and an EV to EBITDA ratio of 22.82, both suggesting that the stock may be priced too high relative to its earnings and asset value.
In terms of performance, Rambus has outperformed the S&P 500 with a year-to-date return of 80.80% compared to the index's 16.45%, and a remarkable 5-year return of 496.57% versus 88.25% for the S&P 500. This strong performance may contribute to the perception of overvaluation, as investors may be pricing in high growth expectations that could be difficult to sustain.