Is Ubiquiti, Inc. overvalued or undervalued?

As of 20 August 2025, the valuation grade for Ubiquiti, Inc. has moved from attractive to fair, indicating a shift in its perceived value. Based on the current metrics, the company appears to be fairly valued. Key valuation ratios include a P/E ratio of 45, a Price to Book Value of 56.67, and an EV to EBITDA of 33.88, which suggest that while the company is performing well, it may not offer significant upside potential compared to its current price.
In comparison to peers, Ubiquiti's P/E ratio of 49.59 is lower than Ciena Corp.'s P/E of 141.61, which is considered very expensive. The PEG ratio of 0.79 also indicates that Ubiquiti is relatively more attractive in terms of growth compared to its valuation. Over the past year, Ubiquiti has delivered a return of 201.96%, significantly outperforming the S&P 500's return of 17.14%, reinforcing the notion that the stock is currently fairly valued given its strong performance.