Is Shoals Technologies Group, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Shoals Technologies Group, Inc. moved from attractive to very expensive. The company appears overvalued based on its current metrics. Key ratios include a P/E ratio of 45, an EV to EBITDA of 17.05, and a Price to Book Value of 1.54. In comparison, peers such as Amkor Technology, Inc. have a P/E of 23.85 and Cirrus Logic, Inc. has an EV to EBITDA of 11.14, indicating that Shoals Technologies is trading at a premium relative to its industry counterparts.
Despite the overvaluation, Shoals Technologies has shown strong recent performance, with a year-to-date return of 79.93% compared to the S&P 500's 13.30%. However, the significant decline over three years at -51.65% suggests volatility and potential concerns about long-term sustainability.