Is Veeco Instruments, Inc. overvalued or undervalued?

As of 21 November 2025, the valuation grade for Veeco Instruments, Inc. has moved from expensive to fair. Based on the current metrics, the company appears to be fairly valued. 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 company is reasonably priced compared to its earnings growth potential.
In comparison to its peers, Veeco's P/E ratio is significantly lower than Littelfuse, Inc. at 30.08 and Universal Display Corp. at 28.20, indicating a more attractive valuation relative to these companies. However, it is important to note that Veeco's recent stock performance has lagged behind the S&P 500, with a year-to-date return of 2.24% compared to the index's 12.26%, and a 3-year return of 40.08% versus 67.17% for the S&P 500. This underperformance may reflect market sentiment despite its fair valuation.