Is Super Micro Computer, Inc. overvalued or undervalued?

Oct 20 2025 12:24 PM IST
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As of October 17, 2025, Super Micro Computer, Inc. is considered overvalued with a valuation grade of expensive, supported by a P/E ratio of 20, an EV to EBITDA of 17.45, and a Price to Book Value of 3.89, despite a strong year-to-date return of 71.19%.
As of 17 October 2025, the valuation grade for Super Micro Computer, Inc. moved from fair to expensive, indicating that the company is overvalued. The key ratios supporting this conclusion include a P/E ratio of 20, an EV to EBITDA of 17.45, and a Price to Book Value of 3.89. In comparison, a peer like Super Micro Computer, Inc. has a higher P/E ratio of 22.01, suggesting that the company is trading at a premium relative to its peers.

Despite a strong performance with a year-to-date return of 71.19% compared to the S&P 500's 13.30%, the elevated valuation metrics imply that the stock may not be a favorable investment at current levels. Overall, Super Micro Computer, Inc. appears to be overvalued based on its financial ratios and peer comparisons.
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