Is Super Micro Computer, Inc. overvalued or undervalued?

As of 16 June 2025, the valuation grade for Super Micro Computer, Inc. has moved from fair to expensive, indicating that the company is overvalued. The current P/E ratio stands at 20, while the EV to EBITDA ratio is 18.10, and the Price to Book Value is 3.89. These ratios suggest that the company's valuation metrics are higher than what might be justified by its earnings and asset values.
In comparison to its peers, Super Micro Computer, Inc. has a P/E ratio of 20.81, which is slightly above the industry average, and its EV to EBITDA ratio is also on the higher side. Notably, while the company has demonstrated strong performance with a ROCE of 21.56% and ROE of 19.38%, the recent stock performance shows a significant decline of 54.83% over the past year, contrasting with a 10.26% return from the S&P 500. This further reinforces the conclusion that Super Micro Computer, Inc. is currently overvalued.