Is Zebra Technologies Corp. overvalued or undervalued?

As of 17 October 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 P/E ratio of 37, which is significantly higher than peers like Dell Technologies, Inc. with a P/E of 20.77, and Hewlett Packard Enterprise Co., which has a P/E of 10.09. Additionally, Zebra's EV to EBITDA ratio stands at 23.17, compared to Dell's 13.19, further supporting the notion of overvaluation.
Zebra Technologies Corp. also has a PEG ratio of 0.54, suggesting that while the company may have growth potential, its current valuation does not reflect a favorable investment opportunity relative to its earnings growth. The stock has underperformed against the S&P 500 over the past year, returning -21.54% compared to the index's 14.08%, which reinforces the perception of overvaluation in light of its recent performance.