Is Super Micro Computer, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Super Micro Computer, Inc. has moved from fair to expensive, indicating that the stock is overvalued. Key valuation ratios include a P/E ratio of 20, an EV to EBITDA of 17.45, and a Price to Book Value of 3.89, all suggesting a premium valuation relative to its earnings and assets. In comparison to its peer, which has a P/E of 22.01, Super Micro appears slightly more attractive, yet still falls into the expensive category.
The company has demonstrated strong performance with a year-to-date return of 71.19%, significantly outpacing the S&P 500's 13.30% return in the same period. However, the long-term returns show a stark contrast, with the 10-year return of 1812.06% for Super Micro lagging behind the S&P 500's 227.77%. Overall, the current valuation metrics and the recent performance suggest that Super Micro Computer, Inc. is overvalued.