Is Synaptics, Inc. overvalued or undervalued?

As of 8 May 2025, the valuation grade for Synaptics, Inc. has moved from very attractive to attractive, indicating a shift in market perception. The company is currently considered overvalued based on its financial metrics. Key ratios include a P/E ratio of 19, an EV to EBITDA of 60.31, and a PEG ratio of 0.06, which suggests that while growth expectations are low, the current valuation may not be justified given the high EV to EBITDA ratio.
In comparison to peers, Synaptics, Inc. has a lower P/E ratio than MACOM Technology Solutions Holdings, Inc., which stands at 83.82, but is higher than Amkor Technology, Inc. at 18.76. Additionally, the company's ROE of 15.75% is notable, yet the negative ROCE of -3.00% raises concerns about capital efficiency. Despite a recent uptick in stock price, Synaptics has underperformed against the S&P 500 over various time frames, particularly with a year-to-date decline of 16.71% compared to the S&P's 2.44%.