Is Veeco Instruments, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Veeco Instruments, Inc. has moved from attractive to fair, indicating a shift in its perceived value. The company appears to be fairly valued based on its current metrics, with a P/E ratio of 13, an EV to EBITDA of 12.38, and a PEG ratio of 1.07. In comparison to peers, Littelfuse, Inc. has a significantly higher P/E of 30.08, while Universal Display Corp. shows a more attractive valuation with a P/E of 28.20.
Despite the recent fair valuation, Veeco's stock has underperformed relative to the S&P 500 over the past year, with a return of -4.55% compared to the index's 14.08%. However, it has shown strong performance over the longer term, with a 5-year return of 135.13%, outperforming the S&P 500's 91.29%. Overall, while the stock is currently fairly valued, its historical performance suggests potential for future growth.