Is Veeco Instruments, Inc. overvalued or undervalued?

As of 12 February 2025, the valuation grade for Veeco Instruments, Inc. has moved from attractive to very attractive, indicating a significant improvement in its perceived value. The company appears to be undervalued based on its current metrics. Key ratios include a P/E ratio of 13, an EV to EBITDA of 12.38, and a PEG ratio of 1.07, which suggest that the stock is trading at a reasonable price relative to its earnings growth potential.
In comparison to its peers, Veeco Instruments has a P/E ratio of 13.23, which is significantly lower than Advanced Energy Industries, Inc. at 41.62, indicating that Veeco is more attractively priced. Furthermore, Plexus Corp. has a much higher P/E ratio of 45.10, reinforcing the notion that Veeco is undervalued in its industry context. Despite recent underperformance relative to the S&P 500, with a year-to-date return of -26.42% compared to the index's 2.44%, the overall valuation metrics suggest that Veeco Instruments, Inc. presents a compelling investment opportunity at its current price.