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 perceived value. Based on the current metrics, Rambus appears to be overvalued, with a P/E ratio of 30, a Price to Book Value of 5.32, and an EV to EBITDA of 22.82, which are all higher than its peers. For comparison, Skyworks Solutions, Inc. has a P/E of 20.61 and an EV to EBITDA of 10.27, while Qorvo, Inc. shows a P/E of 36.95 and an EV to EBITDA of 16.39, highlighting that Rambus is positioned at a premium relative to some of its competitors.
Despite the overvaluation, Rambus has delivered impressive returns, with a year-to-date return of 80.80% compared to the S&P 500's 16.45%, and a five-year return of 496.57% versus the S&P 500's 88.25%. This strong performance may reflect investor confidence, but the elevated valuation ratios suggest caution moving forward.