Is Seagate Technology Holdings Plc overvalued or undervalued?

As of 26 October 2022, the valuation grade for Seagate Technology Holdings Plc moved from expensive to risky, indicating a shift in perception regarding its market value. The company appears to be overvalued at this time. Key ratios include a P/E ratio of 18, an EV to EBITDA of 16.48, and a PEG ratio of 0.03, which suggests that the stock may not be justified at its current price given its earnings growth prospects.
In comparison to peers, NetApp, Inc. has a more attractive P/E ratio of 16.88 and an EV to EBITDA of 12.03, while Western Digital Corp. shows a very attractive P/E of 7.53 and an EV to EBITDA of 6.31. These comparisons highlight that Seagate's valuation metrics are less favorable relative to its peers, reinforcing the conclusion that it is overvalued. Additionally, Seagate has outperformed the S&P 500 in various time frames, including a 54.19% return year-to-date, but this strong performance does not mitigate the concerns regarding its current valuation.