Is Zebra Technologies Corp. overvalued or undervalued?

As of 29 April 2025, Zebra Technologies Corp. has moved from a valuation grade of very expensive to expensive. The company is currently considered overvalued. Key ratios include a P/E ratio of 37, an EV to EBITDA of 23.17, and a PEG ratio of 0.54, which suggests that while growth expectations are factored in, the current price may not justify the earnings potential. In comparison to peers, Zebra Technologies Corp. has a P/E ratio of 36.08, while Hewlett Packard Enterprise Co. is significantly lower at 7.51, indicating a stark contrast in valuation metrics. Additionally, Zebra's EV to EBITDA ratio of 23.17 is higher than the industry average, reinforcing the notion of overvaluation. Despite a recent stock return of 1.09% over the past week compared to a slight decline in the S&P 500, the longer-term performance shows underperformance, particularly with a year-to-date return of -23.30%.