Is SMART Global Holdings, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for SMART Global Holdings, Inc. has moved from attractive to expensive, indicating a shift towards overvaluation. The company appears overvalued based on its current metrics, with a P/E ratio of 37, a Price to Book Value of 1.71, and an EV to EBITDA of 8.11. In comparison, peers such as Tower Semiconductor Ltd. have a P/E of 37.63 and Semtech Corp. has a significantly higher P/E of 70.91, suggesting that SMART Global is trading at a premium relative to some of its competitors.
Despite a strong one-year return of 34.61% compared to the S&P 500's 14.08%, the longer-term performance shows a decline, with a 5-year return of 71.32% versus the S&P 500's 91.29%. This discrepancy in performance over time reinforces the notion that the stock may be overvalued at its current price of 21.74.