Is Vishay Intertechnology, Inc. overvalued or undervalued?

As of 5 February 2025, Vishay Intertechnology, Inc. has moved from a fair to a risky valuation grade. The company appears to be overvalued, with a P/E ratio of 53, significantly higher than peers like Advanced Energy Industries, which has a P/E of 41.62, and Plexus Corp. at 45.10. Additionally, the EV to EBITDA ratio stands at 36.69, indicating a premium valuation compared to the industry.
In terms of financial performance, Vishay's ROCE is only 2.92% and ROE is 2.06%, which are notably low and suggest inefficiency in generating returns for shareholders. The dividend yield of 25.22% is attractive but may not be sustainable given the underlying financial metrics. Overall, the company’s valuation appears disconnected from its performance, reinforcing the assessment of being overvalued, especially in light of its poor stock performance relative to the S&P 500 over various time frames.