Is Shoals Technologies Group, Inc. overvalued or undervalued?

As of 7 July 2025, the valuation grade for Shoals Technologies Group, Inc. moved from expensive to very expensive. The company is overvalued based on its current financial metrics. The P/E ratio stands at 45, significantly higher than the peer average of 56.57 for MACOM Technology Solutions Holdings, Inc., and the EV to EBITDA ratio is 17.05, which is also above the peer average of 24.31. Additionally, the Price to Book Value is 1.54, indicating a premium over its book value compared to other peers.
In comparison with its peers, Amkor Technology, Inc. has a P/E of 23.85, which suggests a more favorable valuation relative to Shoals. The recent stock performance shows that Shoals outperformed the S&P 500 with a year-to-date return of 36.53% compared to the S&P 500's 12.22%, but this strong performance does not mitigate its overvaluation status.