Is Vicor Corp. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Vicor Corp. has moved from attractive to fair, indicating a shift in its perceived value. The company appears to be overvalued, particularly when considering its high P/E ratio of 101, a price-to-book value of 4.43, and an EV to EBITDA ratio of 63.01, which are significantly higher than its peers. For instance, TTM Technologies, Inc. has a P/E ratio of 45.23, while Camtek Ltd. stands at 30.24, both suggesting that Vicor is trading at a premium compared to these competitors.
Despite recent strong performance, with a 1-year stock return of 39.56% compared to the S&P 500's 14.08%, the long-term outlook is concerning, as the 5-year return for Vicor is down 33.14%, while the S&P 500 has gained 91.29%. This disparity reinforces the notion that Vicor Corp. is overvalued in the current market environment.