Is Shoals Technologies Group, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Shoals Technologies Group, Inc. has moved from attractive to very expensive. The company appears to be overvalued based on its current metrics. Notable ratios include a P/E ratio of 45, an EV to EBITDA of 17.05, and a Price to Book Value of 1.54, all of which suggest that the stock is trading at a premium compared to its peers.
In comparison to its peers, MACOM Technology Solutions Holdings, Inc. has a significantly higher P/E of 73.15, while Amkor Technology, Inc. shows a much lower P/E of 23.85, indicating that Shoals is priced higher than both. The recent stock performance has been strong, with a 1-year return of 101.42% compared to the S&P 500's return of 14.08%, which highlights the market's enthusiasm for the stock despite its overvaluation.