Is Synaptics, Inc. overvalued or undervalued?

As of 7 August 2025, the valuation grade for Synaptics, Inc. has moved from fair to risky, indicating a deterioration in its investment appeal. The company appears to be overvalued given its current metrics, particularly with a P/E ratio of 19, a Price to Book Value of 3.01, and a PEG Ratio of 0.06, which suggests that the stock may not be justified at its current price level. In comparison, peers such as Fabrinet have a P/E ratio of 41.84, while Rambus, Inc. boasts a more attractive valuation with a P/E of 34.99, highlighting Synaptics' relative overvaluation.
Additionally, Synaptics has demonstrated poor performance against the S&P 500, with a YTD return of -2.58% compared to the index's 12.22%, and a staggering 3-year return of -31.11% versus 70.41% for the S&P 500. This stark contrast reinforces the notion that Synaptics is currently overvalued in the market.