Is Super Micro Computer, Inc. overvalued or undervalued?

As of 6 August 2025, the valuation grade for Super Micro Computer, Inc. has moved from very expensive to expensive, indicating a shift towards a less favorable valuation. The company appears to be overvalued based on its current metrics, with a P/E ratio of 20, a Price to Book Value of 3.89, and an EV to EBITDA of 17.45. In comparison to its peer, which has a P/E of approximately 22.01, Super Micro's valuation ratios suggest it is trading at a premium relative to its industry peers.
The company's return performance has been notable, particularly over the last three years, where it has achieved a remarkable 637.40% return compared to the S&P 500's 70.41%. However, the recent stock performance shows a modest 5.15% return over the past year, lagging behind the S&P 500's 17.14%. This divergence reinforces the view that Super Micro Computer, Inc. is currently overvalued in the market.