Is Zebra Technologies Corp. overvalued or undervalued?

As of 7 July 2025, the valuation grade for Zebra Technologies Corp. has moved from fair to expensive, indicating a shift towards overvaluation. The company appears overvalued based on its key ratios, including a P/E ratio of 37, an EV to EBITDA of 23.17, and a PEG ratio of 0.54, which suggests that the stock is trading at a premium compared to its growth prospects. In comparison to peers, Dell Technologies, Inc. has a P/E of 20.77 and an EV to EBITDA of 13.19, while Hewlett Packard Enterprise Co. is even more expensive with a P/E of 10.09. In terms of recent performance, Zebra Technologies has underperformed relative to the S&P 500, with a year-to-date return of -16.40% compared to the index's 12.22%. This underperformance, coupled with the elevated valuation ratios, reinforces the conclusion that Zebra Technologies is overvalued in the current market environment.