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, reinforcing the notion that SMART Global is priced at a premium relative to its industry.
Despite a strong one-year return of 34.61%, which outperformed the S&P 500's 14.08%, the longer-term performance shows a decline, with a 5-year return of 71.32% compared to the S&P 500's 91.29%. This suggests that while the stock has had recent momentum, its valuation may not be justified given the comparative metrics and the overall market performance.